10/06/2008 (Commodity Online), Kuala Lumpur - Higher demand for biofuel caused by crude oil prices and rally in prices of soyaoil helped Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives Bhd on Monday.

It rose sharply as crude oil price surged to a near US$140 (US$1 = RM3.29) per barrel,

Despite a lower export estimate by cargo surveyor Intertek Testing Services, the CPO prices managed to continue their bullish momentum, the dealers said.

According to Intertek, exports of Malaysian palm oil products for May 2008 dropped six per cent to 1.209 million tonnes from 1.286 million tonnes the previous month.

On Monday, the spot month June 2008 gained RM60 to RM3,660 per tonne, July 2008 advanced RM73 to RM3,646 per tonne, August 2008 increased RM60 to RM3,660 per tonne and September 2008 rose RM50 to RM3,670 per tonne.

As for the physical market, June South was higher at RM3,680 per tonne from RM3,620 per tonne previously.

Turnover was higher at 9,348 lots compared to 7,798 lots last Friday while open interest declined to 42,232 cotnracts from 42,356 contracts previously.

Meanwhile, at the Multi-Commodity Exchange of India where crude palm oil futures was relaunched, the July 31 contract was marginally trading lower at Rs 525.30 per 10 kg on morning trade losing Rs 2.90 against previous close.