CPO futures closes higher on supply concerns

Business & Markets 2013
Written by Bernama
Friday, 06 December 2013 21:10
A + A - Reset
KUALA LUMPUR (Dec 6): Crude palm oil (CPO) futures contract on Bursa
Malaysia Derivatives closed higher, prompted by concerns that supply might be
affected by the continuous rain in key growing areas, a dealer said.
Phillip Futures Sdn Bhd Derivative Dealer David Ng said the wet weather in
palm-growing states, have resulted in massive floods.
He told Bernama that demand from China is expected to mount later this month,
given the Chinese Lunar New Year festival in January, and this is likely to
support prices upwards.
Meanwhile, spot month December 2013 gained RM27 to RM2,629, January
2014 firmed RM30 to RM2,658, February 2014 rose RM29 to RM2,670, and
March 2014 increased RM28 to RM2,673 a tonne.
Volume increased to 29,566 lots, from 27,711 lots on Thursday, while open
interest rose to 179,022 contracts, from 176,922 contracts yesterday.
On the physical market, December South remained unchanged, at RM2,640 a
tonne.