Crude palm oil futures prices closed higher yesterday on speculative buying interest and tight supply, a dealer said.

“With production currently at low levels due to unfavourable weather conditions, prices are expected to remain positive,” he said.

As crude oil hovered below US$77 (US$1.00 = RM3.25) a barrel yesterday, this was also more positive news for crude palm oil which appeals as the better choice for biodiesel feedstock.

August contract rose RM58 to RM2,580 a tonne, September added RM50 to RM2,533, October perked RM62 to RM2,519 and November gained RM65 to RM2,517 a tonne.

Volume rose to 26,561 lots yesterday from 16,473 lots on Wednesday, while open interest decreased to 68,575 contracts from 68,667 contracts.

Source: Business Times