Update CPO futures jump across-the-board amid bullish sentiment at palm oil conference

[Cals]

Update CPO futures jump across-the-board amid bullish sentiment at palm oil conference

Business & Markets 2014

Written by Ho Wah Foon of theedgemalaysia.com

Wednesday, 05 March 2014 16:21

KUALA LUMPUR (March 5): Crude palm oil (CPO) futures rose sharply in afternoon trades as world famous speakers gave their bullish views on price outlook at the on-going international palm oil conference.

Futures contracts rose across-the-board, with hefty rises seen from March 2013 to May 2015 trades.

CPO prices had risen in morning trades due mainly to reports on the current dry weather that could affect production and supply of the vegetable oil.

At 3.47 pm, futures trades from March 2013 to May 2015 rose from RM27 to RM60 per tonne. The benchmark May futures rose RM60 to RM2,861 on trades of 11,514 lots, with open interest at 65,905.

Just after lunch break, Dr James Fry – a renowed speaker – said CPO prices on Bursa Malaysia could rise to above RM3,000 and palm kernel oil at RM4,500, if Brent oil stays at $110.

He said the current drought would cut South East Asia's CPO output in Q3 and rising biofuel mandates would add to market tightness.

Dorab Mistry, another famous trader projected CPO prices to hit a high of RM3,500 per tonne in his bullish view on the vegetable market.