Palm oil rises 2% on spot demand

Speculators take fresh positions on hopes of Chinese stimulus measure

Crude palm oil prices rose by Rs 11 to Rs 577.50 per 10 kg in futures trade today as speculators created fresh positions on the back of a pick-up in spot market demand amid low stocks.

On the Multi Commodity Exchange, crude palm oil for August delivery rose by Rs 11, or 1.94%, to Rs 577.50 per 10 kg, with a trading volume of 889 lots.

The July contract moved up by Rs 10.10, or 1.78%, to Rs 574.80 per 10 kg, with a business turnover of 238 lots.

Analysts said fresh buying by speculators on hopes of pick-up in spot market demand amid hopes of possible stimulus measures by China that could boost growth and commodity demand as China's gross domestic product grew 7.6% in the second quarter of 2012.

 

Meanwhile, in Malaysia, September-delivery palm oil rose by 2.80% to 3,152 ringgit ($991) a tonne on the Malaysia Derivatives Exchange, the biggest gain for the most-active contract since June 25.