Crude palm oil up 0.9% on increase in spot demand, global cues

Oil for October delivery increased by 0.83%

Crude palm oil rose by Rs 4.80 to Rs 518 per 10 kg in futures trade today, gaining for the fourth straight day as traders and speculators indulged in expanding positions on expectations of rise in spot demand.

 

Further, decline in supplies from the overseas markets also influenced prices.

 

At the Multi Commodity Exchange, crude palm oil for delivery in November rose by Rs 4.80, or 0.93%, to Rs 518 per 10 kg, with a business turnover of 167 lots.

 

The oil for October delivery increased by Rs 4.30, or 0.83%, to Rs 521.90 per 10 kg, with trading volume of 200 lots.

 

In Malaysia, Palm oil gained as much as 0.70% to 2,365 ringgit ($737) a tonne on the Malaysia Derivatives Exchange.

 

Marketmen attributed the rise in crude palm oil prices at futures trade to firm spot demand and a firming global trend where palm oil climbed to one-month high on speculation that output in Malaysia, the world's second-biggest producer, may have expanded last month at a slower pace than predicted by analysts.