CRUDE palm oil futures on Bursa Malaysia Derivatives closed firmer yesterday, bolstered by rising crude oil and soy prices. A dealer said the expected lower production due to the hot weather, was likely to further boost market sentiment. The palm price was expected to reach around RM2,700 this week, he added. Cargo surveyor Societe Generale de Surveillance reported that Malaysian palm oil exports for the Feb 1-22 period slipped 8.4 per cent to 865,593 tonnes from 945,311 tonnes in the first 20 days of January.

The March 2010 contract gained RM35 to RM2,645 per tonne, April 2010 increased RM75 to RM2,674 per tonne, May 2010 added RM35 to RM2,631 per tonne and June 2010 was RM33 higher at RM2,623 per tonne. Turnover dropped to 11,203 lots from 14,925 lots last Friday while open interest rose to 81,398 contracts from 80,465 contracts. The dealer said there was no increase in volume as Chinese players were still in holiday mood after the Lunar New Year. On the physical market, March South rose to RM2,650 per tonne from RM2,610 per tonne. Source : Business Times