Crude palm oil up on spot demand

Crude palm oil prices rose by Rs 3.80 to Rs 420 per 10 kg in futures trade today as speculators indulged in creating fresh positions on hopes of a rise in demand in the spot market for the festive season.

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

At the Multi Commodity Exchange, the November contract rose by Rs 3.80, or 0.91%, to Rs 420 per 10 kg, with a trading volume of 365 lots.

The October contract moved up by Rs 1.30, or 0.31%, to Rs 413.80 per 10 kg, with a business volume of 279 lots.

Marketmen said fresh buying by speculators on hopes of a pick-up in demand in the spot market mainly led to the rise in crude palm oil prices in the futures market.

They said a firming trend in overseas markets also supported the uptrend to some extent.

Meanwhile, the oil gained 2.7% at $791 a tonne on the Malaysia Derivatives Exchange.