Palm Futures Surge on Positive Export Data

CRUDE palm oil (CPO) futures prices on Bursa Malaysia Derivatives closed mostly higher yesterday boosted by positive export data for the January period.

Exports of Malaysian palm oil products for January jumped 27.5 per cent to 1,496,805 tonnes from 1,173,680 tonnes shipped in December, cargo surveyor Intertek Testing Services had said on Monday.

Another surveyor, Societe Generale de Surveillance, had reported palm oil exports in January gained 23.9 per cent to 1,478,739 tonnes from 1,193,465 tonnes in December.

Meanwhile an analyst said, the lower CPO output in the first six months will likely reduce palm oil stocks in Malaysia.

“This may raise CPO prices as demand for the vegetable oil improves in tandem with the global economic recovery,” he said.

The market was closed on Monday for the Federal Territory Day.

At yesterday’s close, February 2010 contract rose RM13 to RM2,463 per tonne, March 2010 increased RM13 to RM2,458, April 2010 rose RM7 to RM2,452, May 2010 rose RM8 to RM2,449 per tonne.

Turnover declined to 14,734 lots from 14,890 last Friday and open interest decreased to 74,332 contracts from 75,930 contracts previously.

On the physical market, February South increased to RM2,480 per tonne from RM2,470 per tonne previously.

Source : Business Times

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