Crude palm oil (CPO) futures on Bursa Malaysia Derivatives rebounded yesterday as the overnight gains by rival US soybean helped to lift the market amid thin trade, dealers said.

“The CPO gains were mainly due to the rise of soybean prices although trading was relatively quiet as market players were still searching for fresh leads,” said one of the dealers.

CPO and soybean, which are competing for the same export destinations, always moved in tandem.

The crude oil market, which pulled back after gaining more than five per cent two days ago, also provided support to the vegetable oil market, another dealer said.

However, the overall volume is expected to be thin on expectation of less orders from China ahead of the country’s National Holiday next week, he said.

At close, CPO futures for the October 2009 contract rose RM26 to settle at RM2,162 per tonne and November 2009 advanced RM24 to RM2,131 per tonne.

For other contracts months, December 2009 and January 2010 added RM10 and RM12 respectively to settle at RM2,115 per tonne.

Yesterday’s turnover, however, was lower at 9,041 lots compared to 16,056 lots the previous day while open interest rose to 95,200 contracts from 92,125 contracts earlier.

On the physical market, October South was traded at RM2,200 per tonne, up from RM2,170 per tonne recorded for the September South contract the previous day.

Source : Business Times

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