Palm Futures Extend Gains

Crude palm oil futures prices on Bursa Malaysia Derivatives extended its gains to close higher, led by renewed buying, strong demand and projected shortage of the commodity, a dealer said.

Cargo surveyor, Intertek Testing Services, said exports rose 18.9 per cent during the November 1-25 period compared with the same period in October.

Societe General de Surveillance said exports advanced 24.9 per cent from the previous month, thanks to sustained demand especially from China.

“Heavy rain in some parts of Malaysia is likely to delay harvesting of the crop. Concerns over decreasing stocks and rising exports weighed on prices,” he said.

The dealer also said fast drawdown of stocks was expected to push prices higher.

December 2010 rose RM86 to RM3,372, January 2011 added RM97 to RM3,306, February 2011 was RM108 higher at RM3,276 and March 2011 increased RM102 to RM3,252.

Volume surged to 20,047 lots, from 19,971 lots on Wednesday, while open interest decreased to 79,077 contracts, from 79,273 contracts, on Wednesday.

On the physical market, November South perked RM50 per tonne to RM3,380 a tonne.

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