Palm oil futures surge

Palm oil futures surge

KUALA LUMPUR (Reuter): Malaysia's February futures contract hit limit-up of 50-ringgit at 1,614 ringgit ($479.64) a ton by the end of the morning session.

Traders said other futures contracts and physical prices were also marked up sharply.

The continued bullish sentiment was attributed to a further plunge in the ringgit against the U.S. dollar, an Indian tender today and higher soyoil prices in Chicago overnight, they said.

"Due to currency factor, futures prices may all hit limit-up if more aggressive buying and covering appear on the back of the Indian tender," a senior trader said.

"Palm prices are more attractive because of the ringgit, and we hope the Indians will buy today," he said.

Expectations of tight supplies in the coming months, caused by the smog and forest fires in Indonesia, could also prompt more demand in the near future, traders said.

Firm sentiment also prevailed among physical crude palm oil, traders said, adding that the rise was in tandem with futures sector.