Crude palm oil prices rose on Wednesday boosted by dry weather concerns in South America, but the prospects of slowing demand due to Europe's economic woes capped gains. At the MCX, Crude palm oil futures for February 2012 contract were trading at Rs. 527.60 per 10 kg, up by 0.19%, after opening at Rs. 526 against the previous closing price of Rs.526.60. It touched the intra-day high of Rs. 527.90 till the trading. (At 3.45 PM today).
Yesterday, prices rose tracking a rally in U.S. soybeans to four-month highs on investor concern that hot, dry weather in South America could hurt production. A weaker ringgit currency against the U.S. dollar also raised demand prospects for crude palm oil.
Malaysia (13 million tons) and Indonesia (10 million tons) are the major producers. They together account for 85% of production.