Crude palm oil (CPO) futures on the national commodity exchange rose 11% over the past one month in line with strong Malaysian demand supported by firm crude oil prices.
CPO prices in Malaysia rose nearly 20% in the first quarter of 2009 as exports were also seen recovering. Societe Generale de Surveillance reported 5.4% increase to 12.23 lakh tonne in March, sources said.
MCX CPO April futures gained 11% to trade at Rs 326.80 per 10 kg on Thursday over the previous month following reports of lower production of Malaysian crop and lower stocks. Openinterest has gone up to 9,520 tonne from just 360 tonnelast month.
CPO prices at Kandla port have increased by 5% to quote at Rs 322.15 per 10 kg on Thursday over last week.
?Supply from importers is comfortable but local traders have very limited stocks and they are buying,? a local trader said. Local price of crude palm oil was quoted at Rs 380 per 10 kg on Thursday.
CPO April contracts on the Bursa Malaysia rose to RM 2,260 per tonne (Malaysian Ringgit) on Thursday, up by 13% over the past month.
Malaysian Palm Oil Board (MPOB) last month released its latest figures for February which indicated a further drop in palm oil stocks to 1.56 million tonne from 1.83 million tonne in January.
Traders are projecting CPO prices to range from 1,500 Malaysian Ringgit to 2,100 Malaysian Ringgit per tonne during the current quarter (April-June) 2009, easily over 50% lower from 3,400 Malaysian Ringgit to 3,600 Malaysian Ringgit a year ago.
HwangDBS Vickers Research expects crude palm oil to average 1,900 Malaysian Ringgit per tonne in 2009, supported by slower soybean output supply growth, while the La Nina’s effects in South America could offset the anticipated jump in soybean output in the USA.