Crude palm oil futures move up on firm spot demand

Crude palm oil rose further by Rs 2.40 to Rs 492.50 per 10 kg in futures trade today as speculators indulged in creating fresh positions on expectations of a rise in demand in the spot market for the forthcoming marriage season.

A firming trend in overseas market also influenced crude palm oil prices in the futures market.

At the Multi Commodity Exchange, crude palm oil for October delivery rose by Rs 2.40, or 0.48%, to Rs 492.50 per 10 kg with trading volume of 10 lots.

Similarly, the oil for November delivery moved up by Rs 1.90, or 0.39%, to Rs 490.60 per 10 kg, with a trading volume of two lots, while CPO contracts for September delivery inched up by Rs 1.70, or 0.34%, to Rs 493 per 10 kg in 54 lots.

Analysts said fresh buying by speculators on hopes of a pick-up in demand in the spot market due to the ongoing festive season and forthcoming marriage season mainly led to the rise in crude palm oil prices in the futures market.

Meanwhile, palm oil prices gained as much as 0.90% to $1,022 a metric tonne on the Malaysia Derivatives Exchange.