Crude Palm Oil Futures Close Higher On Speculative Trade
Posted: 13 Oct 2009 04:01 AM PDT
Crude palm oil futures on Malaysia’s derivatives exchange ended higher Tuesday in volatile trade, spurred by speculative interest, market participants said.
The benchmark December contract on Bursa Malaysia Derivatives closed MYR10 up at MYR2,157 a metric ton after trading in a range of MYR2,130-MYR2,178.
Traders said cash market trades were minimal with players expecting lower exports in the near- to mid-term as major vegetable oil markets such as India and China are well-stocked, having bought in advance of festivals like Mid-Autumn and Diwali.
But, trading volume on the BMD was high, suggesting speculative funds were in the market, they said.
Two hours before closing, CPO prices plunged into the negative territory, hitting an intraday low of MYR2,130 not long after being pushed to their intraday high of MYR2,178.
