CPO PRICES: Low Production, Increasing Prices

CPO futures for June 2016 delivery closed 0.62% higher today, or 17.00 points, at MYR2,779 or IDR9.16 million per ton.

This rally on the third day, according to Singapore trader Rajesh Modi from Sprint Exim, was largely driven by production.

"I don't see much buying, but the market is just moving up. This is because the production is low," he explained in a Bloomberg report.

Palm oil production in Malaysia is currently at its lowest due to El Nino.

Price changes in most active CPO June 2016 contracts