KUALA LUMPUR: Crude palm oil (CPO) futures closed higher yesterday, even as profit-taking activities were noted in the morning session.
Production traditionally rises in the second half of the year and peaks in October, before slowing down towards the end of the year as palm oil trees rest and monsoon rains complicate harvesting.
But a group of planters on Tuesday estimated output fell by 10.5 per cent in the first 20 days of October, fuelling expectations that end-stocks would stay below the two million tonne mark this year despite earlier bearish forecasts warning of surging stocks and production.
“The news about dropping production in October is the reason,” said a trader.
Spot month November 2013 gained RM31 to RM2,488, December 2013 added RM24 to RM2,481, January 2014 rose RM27 to RM2,482 and February 2014 increased RM29 to RM2,482 a tonne.
Volume fell to 32,615 lots from 37,964 lots, while open interest eased to 184,980 contracts from 193,287 contracts.
On the physical market, November South was up RM30 to RM2,480 a tonne.
Source : Business Times