Crude palm oil prices rose on Tuesday tracking a rally in U.S. soybeans to four-month highs on investors' concern that hot, dry weather in South America could hurt production. At the MCX, Crude palm oil futures for February 2012 contract were trading at Rs. 524 per 10 kg, up by 0.19%, after opening at Rs. 524 against the previous closing price of Rs.523. It touched the intra-day high of Rs. 526 till the trading. (At 2.51 PM today).
A weaker ringgit currency against the U.S. dollar also raised demand prospects for crude palm oil.
Yesterday prices rose on speculation that stockpiles and output in Malaysia, the second-largest producer, will decline.
Malaysia (13 million tons) and Indonesia (10 million tons) are the major producers. They together account for 85% of production.