Business Times

Wednesday - January 30, 2008

CPO FUTURES

Crude palm oil futures prices on Bursa Malaysia Derivatives Bhd closed higher yesterday in line with the rebound in equity markets regionally and globally, a dealer said.

He noted that the stock market had stabilised yesterday on expectations that the US Federal Reserve will further cut its key interest rate this week to help give the US economy a boost.

Last week, the US Federal Reserves cut interest rates by 75 basis points after global markets dropped drastically due to concerns about a possible recession in the US.

Fear of a US economic recession propelled fund managers to sell off commodities including crude palm oil on Monday.

The dealer also said the rise in crude oil price to US$91 (US$1 = RM3.26) per barrel yesterday also helped the market to turn positive.

At close yesterday, Feb 2008 jumped RM31 to RM3,201 per tonne while March 2008 went up RM50 to RM3,197. April 2008 and May 2008 both soared RM50 to RM3,200 respectively.

Volume slipped to 8,107 lots from 19,109 lots on Monday as most players were on a wait-and-see stance, while open interest increased to 44,437 contracts from 42,177 contracts.

On the physical market, February South edged up to RM3,230 per tonne from RM3,200 on Monday.

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