Crude palm oil futures touches fresh high of Rs Rs 748.80 per 10 kg

Crude palm oil futures surge to Rs 742.10 per 10 kg on August 3 as participants increased their long positions. Malaysian palm oil futures for October settled with a loss of 3.5 percent on the Bursa Malaysia last week.

Traders have pinned their hopes on lower inventories and output concerns in Indonesia and Malaysia due to adverse weather, labour shortages and lesser fertiliser usage in the past few months.

In the futures market, crude palm oil (CPO) for August delivery touched an intraday high of Rs 748.80 and a low of Rs 739.20 per 10 kg on the Multi Commodity Exchange (MCX). So far in the current series, CPO has touched a low of Rs 553 and a high of Rs 748.80.

CPO futures for August delivery gained Rs 7.2, or 0.98 percent, to Rs 742.30 per 10 kg at 15:35 hours IST on a business turnover of 4,527 lots. The same for September rose Rs 7.40, or 1.02 percent, at Rs 734 per 10 kg on a business volume of 3,027 lots.

The value of August and September contracts traded so far is Rs 76.59 crore and Rs 17.78 crore, respectively.

Kotak Securities expects MCX CPO to follow BMD CPO and trade range bound with a positive bias this week.

As of July 30, MCX CPO August was trading at a premium of Rs 6 from its import cost at the Kandla port.