CRUDE palm oil (CPO) futures prices on Bursa Malaysia Derivatives rose to
over a two-year high yesterday amid a shortage of supply stoked by
floods and rising soyoil prices in China.
The benchmark third-month CPO contract, January 2011 surged by RM83 to RM3,273 per tonne, a level unseen since July 18, 2008.
“The
local CPO prices moved up in a moderately active trade today with most
players covering their position after the three-day break (Deepavali
holiday and weekend) amid concerns that floods in the northern state
would limit the supply of palm oil,” one of the dealers said.
The positive gains of soyoil prices on China’s Dalian Exchange also lifted market sentiments.
Top
analyst from Godrej International, Dorab Mistry recently said CPO
futures could hit RM3,300 per tonne in the near future as weather
concerns plagued global oilseed production.
The market is
currently waiting for the forecast figures of palm oil exports data by
cargo surveyors for the first 10 days of November on Wednesday, which is
expected to be better than October data.
At close, both November 2010 and December 2010 surged RM83 each to settle at RM3,263 and RM3,275 per tonne respectively.
February 2010 contract settled RM79 higher at RM3,274 per tonne.
Overall
volume, however fell slightly to 18,634 lots compared with 18,948 lots
recorded last Thursday, while open interest declined to 71,284 contracts
from 72,289 contracts previously.
The Malaysian commodities and financial markets were closed last Friday for Deepavali holiday.
On the physical market, November South added RM80 to finish at RM3,280 per tonne.
Source : Business Times
