Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives rebounded to end sharply higher in tandem with rising crude oil and soybean prices, dealers said yesterday.

Crude oil prices moved above US$80 (US$1.00 = RM3.46) per barrel despite a drop in US fuel stocks, boosted by demand for bio-fuel and vegetable oil, which can be converted into biofuel.

“However, prices are expected to turn bearish on concerns of increasing stocks of the commodity,” a dealer said.

November 2009 increased RM90 to RM2,200 per tonne, December 2009 increased RM65 to RM2,232 per tonne.

Meanwhile, January and February 2010 increased RM70 each to RM2,260 per tonne and RM2,280, respectively.

Yesterdays turnover also increased to 17,110 lots from on Tuesday 12,666 lots while open interest increased to 95,297 contracts from 94,564 contracts on Tuesday. On the physical market, December South rose RM80 to RM2,240 per tonne. Source : Business Times