CPO Receives Energy Boost
May 2008
Crude palm oil (CPO) prices are moving in sync with escalating oil prices, demonstrating an increasing correlation in commodity price behaviour. When crude oil rose to its then all-time high of US$112.21 (RM359) per barrel in early April, palm oil futures for June delivery likewise increased to RM3,455 (US$1,095) per tonne on the Bursa Malaysia Derivatives Exchange. CPO price volatility is also being fuelled by a drop in palm oil stockpiles and excessive hedging in futures, apart from increasing demand for biodiesel due to the uptrend in crude oil.
Crude palm oil (CPO) prices are moving in sync with escalating oil prices, demonstrating an increasing correlation in commodity price behaviour. When crude oil rose to its then all-time high of US$112.21 (RM359) per barrel in early April, palm oil futures for June delivery likewise increased to RM3,455 (US$1,095) per tonne on the Bursa Malaysia Derivatives Exchange. CPO price volatility is also being fuelled by a drop in palm oil stockpiles and excessive hedging in futures, apart from increasing demand for biodiesel due to the uptrend in crude oil.
posted by Toyers at
10:14 PM
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