KUALA LUMPUR: Crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives closed higher yesterday on anticipation of lower production due to the rainy season towards year-end.
Phillip Futures Sdn Bhd derivative product specialist David Ng said the weaker ringgit also bolstered palm oil trading yesterday.
“However, as the winter season approaches in the Northern Hemisphere, seasonal demand might be weaker given that palm oil is not favoured during the winter season in China,” he said.
December 2014 rose RM22 to RM2,230 a tonne, January 2015 went up RM24 to RM2,248 a tonne, February 2015 increased RM21 to RM2,251 a tonne and March 2015 advanced RM16 to RM2,254 a tonne.
Volume declined to 21,206 lots from Monday’s 35,472 lots while open interest was marginally higher at 252,418 contracts against 252,395 contracts previously. On the physical market, December South went up RM20 to RM2,250 a tonne. Bernama