CRUDE
palm oil (CPO) futures prices on Bursa Malaysia Derivatives closed
higher yesterday on expectation that local palm oil output will be
modest amid the uncertain weather condition, dealers said.
They said CPO prices will increase in the third quarter this year in anticipation of strong demand from China and India.
“Future demand from China may go up driven by the festive season demand,” a dealer said.
At close, the October 2010 contract rose RM27 to RM2,737 per tonne,
November 2010 increased RM23 to RM2,723 per tonne, December 2010 went up
RM32 to RM2,730 per tonne and January 2011 added RM29 to RM2,736 per
tonne.
Volume increased to 23,570 lots from 19,686 lots the
previous day while open interest rose to 66,946 contracts from 63,528
contracts earlier.
On the physical market, October South rose RM20 to RM2,750 per tonne.
Source : Business Times
