Crude Palm Oil Ends Up As Crude Oil Extends Gains; Short CoveringCrude palm oil futures on Malaysia’s derivatives exchange ended up Monday rising as much as 1.75% to the highest level since Jan. 12 following fresh buying and short covering.
Crude oil's rise to an intraday high of $72.39 a barrel amid a hiatus in the strengthening of the dollar lent support to the BMD as well, said trade participants.
The benchmark April CPO contract on the Bursa Malaysia Derivatives ended up MYR29, or 1.2%, at MYR2,550 a metric ton, close to an intraday high of MYR2,563/ton.
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"Prices may continue to trade higher in the next (trading) session as some investors have turned bullish and are expecting a positive export/output report this week," said a Kuala Lumpur-based exporter. CPO futures have declined by 5.5% since the beginning of this year due to a likely record soybean crop in South America, an indication global vegetable oil supply may outstrip demand.
Palm oil prices move in tandem with soyoil prices as both compete for similar export destinations.
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