CPO Rises 2.67% To 29 Months High

CPO Benchmark Closed RM3610 >>> July 2008 High

CRUDE palm oil futures hit a 29-month high of RM3,610 a tonne on Bursa Malaysia Derivatives on continued supply concerns and a weaker dollar spurred risk-taking and on spillover support from wheat prices, which are being bolstered by concerns over Australia’s grains output.

The dollar was on the defensive yesterday after the US Federal Reserve said it was open to injecting more funds into the economy.

Palm oil has climbed by more than a third this year, with the biggest weekly gain so far this year last week on bullish forecasts from key industry analysts at an Indonesian conference and erratic weather hitting grains and oilseed regions.

Heavy rains in Australia have sparked concerns about the quality of wheat supplies, lifting US wheat futures and supporting other agricultural commodities. “The market expectation of palm oil stocks falling in November added to the rally on tight grain supplies and the weaker dollar,” said a trader with a foreign commodities brokerage. The Malaysian crude palm oil contract jumped 2.8 per cent to RM3,618 a tonne, a level unseen since July 4, 2008, before settling at RM3,610.

The market is closed today for the Awal Muharam holiday.

At the close, December 2010 rose RM70 to RM3,630, both January 2011 and February 2011 rose RM94 each to RM3,656 and RM3,610, respectively, and March 2011 gained RM90 to RM3,565.

Volume rose to 27,666 lots from 12,897 lots on Friday and open interest increased to 78,702 contracts from 77,910 previously.

On the physical market, December South added RM10 to RM3,620 a tonne.

HAPPY TRADAY