KUALA LUMPUR/MUMBAI (Commodity Online): Crude palm oil (CPO) prices would continue to witness uptrend after having risen 17% this year due to adverse weather conditions and buoyant demand.
Last week, November contract of CPO at Bursa Malaysia Derivaties rosse to RM3,120 a tonne, December 2011 rose to RM 3,146, January 2012 rose to 3135 and February to 3,135. Volume rose to 112,361 lots from 104,432 lots a week earlier while open interest increased to 136,363 contracts from 109,194 contracts.
At India's Multi Commodity Exchange (MCX), CPO futures for NOvember delivery rose 2.56 percent to 492.30 rupees. In Monday morning trade, CPO November contract has risen 1.36% to 499 levels tracking global cues. The upward trend is expected to continue for the day.
Meanwhile, Dorab Mistry, Director of Godrej Indternational Ltd and a renowned oilseeds analysts pointed out that CP prices may climb to 3,300 rinngit or $1,277 per tonne by January and rise to 4000 ringgits or $1,277 a tonne, Bloomberg reported.
He told the China International Oils and Oilseeds Conference in Guanghzhou on Sunday that with palm oil production decelerating and demand remamining buoyant, prices are bound to rise. The demand for vegetable oils is expected to grow by 6 mn tons in the 2011-12 marketing year, outpacing global suppply.
At MCX crude palm oil could witness positive trends on strong demand and surprise drawdown in stocks, according to Kedia Commodities. India's palm oil imports are likely to have fallen in October as they became more expensive after Indonesia tweaked export taxes to promote sales of its refined oil.
Palm oil imports could have dropped 12.2 percent in October to 614,375 tonnes from September, the average of forecasts in a survey of eight traders showed, while soyoil imports are likely to have risen 43 percent to 172,250 tonnes. According to the Malaysian Palm Oil Board (MPOB)'s palm oil statistics, crude palm oil (CPO) production in October climbed 2.1% to 1.90 million tonnes, end-October total palm oil stocks declined 1.55% to 2.10 million tonnes.
