CPO Futures Rise on Short-Covering

THE crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives closed higher yesterday on short-covering activities, a dealer said.

A dealer said buyers were replenishing their stocks ahead of the long Lunar New Year holidays.

“The bleak outlook of soyabean oil and other edible oils in South America due to the drought season also lent support to lift the prices of CPO.

At the close, January 2012 rose RM4 to RM3,224 per tonne, February 2012 and March 2012 advanced RM18 each to RM3,237 and RM3,233 per tonne respectively, and April 2012 gained RM19 to RM3,228 per tonne.

Volume inched up to 16,062 lots, from 16,044 lots on Tuesday, and open interest climbed to 114,847 contracts, from 114,346 contracts previously.

On the physical market, January South gained RM20 to settle at RM3,250 a tonne.

Meanwhile, a bloomberg report said that Palm oil output in Malaysia dropped to a nine-month low last month when the main growing regions were flooded.

Source: Business Times

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