KUALA LUMPUR: Crude palm oil futures on Bursa Malaysia Derivatives closed firmer yesterday spurred by increased demand prompted by the dry weather in the US.

A dealer said buyers shifted their demand to tropical oils on concerns that the drought would be worse-than-expected and have a devastating effect on soyabean oil production.

July 2012 and October 2012 advanced RM77 each to RM3,003 and RM3,035 a tonne, respectively, August 2012 rose RM74 to RM3,018 and September 2012 increased RM72 to RM3,030.

Volume fell to 26,177 lots, from 26,845 lots, and open interest fell to 93,261 contracts, from 94,528, previously.

On the physical market, June South added RM60 to RM3,030 a tonne.

Meanwhile, in Jakarta, a trade ministry official said Indonesia will cut its export tax for CPO to 15 per cent in July from 19.5 per cent for June.

It will also cut its export tax for RBD palm olein to seven per cent in July, from 10 per cent this month.

Source : Business Times

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