CPO Futures Market Firmer On Short Covering

Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives ended the week higher as export outlook for the commodity remained buoyant, dealers said. "The market closed firm on the back of short covering," one of the dealers said. According to the dealers, sentiment remained intact on persistent demand and the tightening of edible oil stocks globally.

They said that demand for palm oil is expected to surge in coming weeks following the Hari Raya and Deepavali holidays.

At close, the CPO futures for August 2009, September 2009 and October 2009 rose RM15 each to settle at RM2,378, RM2,354 and RM2,340 respectively, while November 2009 jumped RM12 to RM2,335 per tonne.

Volume fell to 11,528 lots from 16,049 lots posted yesterday and open interest declined to 78,807 contracts from 80,930 contracts previously.

On the physical market, August South stood at RM2,390 per tonne, up from yesterday's RM2,380 per tonne.