Friday, August 6, 2010

CPO at 3-month high

KUALA LUMPUR: Crude palm oil (CPO) futures rallied to a near three-month high of RM2,638 at midday on Friday, Aug 6 on concerns of flooding due to the rainy season.

At 12.30pm, the CPO for third-month delivery rose RM25 to RM2,638 per tonne. The highest was March 11 when it was at RM2,642.

The Mererorological Department was quoted by Bloomberg as saying there may be some flooding in the some of the main growing areas in November and December because of the La Nina weather conditions.

Meanwhile, Reuters reported U.S. wheat futures jumped more than 5 percent on Friday,taking weekly gains to around 25
percent as Russia's move to temporarily halt grain shipments sparked a buying frenzy.

Chicago Board of Trade (CBOT) front-month wheat futures have nearly doubled since prices bottomed on June 9 at $4.25-''
per bushel as the worst drought on record in Russia, the world's third-largest exporter, destroyed crops.


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