CPO futures close higher on technical buying support

Business & Markets 2013
Written by Bernama
Thursday, 16 May 2013 20:32
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KUALA LUMPUR (May 16): Crude palm oil (CPO) futures contracts on
Bursa Malaysia Derivatives closed higher today on technical buying
support for the commodity.
However, investment analyst from Phillip Futures Sdn Bhd David Ng said
the positive CPO market would likely be capped due to sluggish export
performance for the first 15 days of May and a 4.5 per cent tax for
CPO exports for June.
Malaysia, the world's No. 2 palm oil producer, maintained the tax on
CPO exports for June to boost shipments and pare down inventories.
"Market players are waiting for the full exports figures for May. China
and India have high CPO inventories and this appears as not so positive
export prospects in the near term," he told Bernama.
India and China are two major export markets for the commodity.
Spot month June 2013 rose RM40 to RM2,320 a tonne, July 2013
improved RM29 to RM2,324, August 2013 added RM17 to RM2,314
while September 2013 was RM8 higher at RM2,305.
Turnover increased to 44,002 lots from 42,201 lots on Wednesday but
open interest fell to 215,295 contracts from 215,695 contracts
yesterday.
On the physical market, May South advanced RM40 to RM2,330 a tonne. -- BERNAMA