CRUDE palm oil (CPO) futures closed higher on Bursa Malaysia Derivatives yesterday on speculative buying, said dealers.
Jim Teh, senior palm oil trader, Interband Group of Companies, said demand remained positive despite the decline the past few days.
“Despite the world economic scenario, the price is fantastic and supply is exceeding demand. This is a double bonus for us,” he said.
On Monday, the Malaysian Palm Oil Board reported that Malaysia’s palm oil stocks rose 12.39 per cent to 2.12 million tonnes in September, from 1.89 million recorded in August.
October 2011 rose RM40 to RM2,875 a tonne, both November and December 2011 climbed RM63 each to RM2,863 and RM2,864, respectively, while January 2012 gained RM65 to RM2,878.
Total volume increased to 28,080 lots from Tuesday’s 23,703 lots while open interest rose to 142,442 contracts, from 142,297 , recorded yesterday.
On the physical market, October South gained RM35 to RM2,875 a tonne. – Bernama
Source: Business Times
