CPO futures closes higher

by **Cals** Mon 11 Nov 2013, 23:44

Business & Markets 2013

Written by Bernama

Monday, 11 November 2013 20:09

KUALA LUMPUR (Oct 10): Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed higher today, following encouraging output and stock data released by the Malaysian Palm Oil Board (MPOB) today.

Phillip Futures Sdn Bhd Derivative Product Specialist David Ng said, total end-Oct stocks stood at 1.84 million tonnes — 26 per cent below last year's level, while output grew 3.18 per cent year-on-year, to 1.97 million tonnes.

The market estimated production to increase between eight and 10 per cent for October.

"November's production holds the key, if output registers negative growth and stocks trend flat to lower, then CPO futures could sustain gains above RM2,500 per tonne level, till year-end," Ng said.

Meanwhile, cargo surveyor Intertek Testing Services reported that exports in the first 10 days in November, decreased to 472,000 tonnes, compared with 542,000 tonnes registered a month ago.

Exports to India and the sub-continent registered the sharpest decline to 56,000 tonnes, compared with 152,000 tonnes a month ago.

On the local futures market, November 2013 rose RM23 to RM2,532, December 2013 appreciated RM23 to RM2,530, January 2014 firmed RM20 to RM2,528, and February 2014 increased RM21 to RM2,531 a tonne.

Volume rose to 36,198 lots from 28,904 lots registered on Friday, while open interest increased to 182,784 contracts, against 178,628 contracts recorded previously.

On the physical market, November South was up RM20, at RM2,540 per tonne.