20/12/2011 (Commodity Online) - The benchmark March contract of Crude Palm Oil ended 1.2% higher at MYR 3020a metric tonne on Monday tracking gains in CBOT soyoil and adverse weather worries in soybean growing areas in South America.

The market witnessed a fall along with regional equities on news of North Korean leader Kim Jong Il's death that raised fears of political instability in the region. In later hours, the adverse weather conditions, paved the way for upward momentum in CPO. 

The Eurozone debt crisis and declining export demand in Malaysia may limit upward movements in prices. Adverse weather in Malaysia my lower cPO yields by 15-22% in December from November's level of 1.63 mn tons. January soyoil on the Chicago Board of Trade was trading 0.7% higher at 49.90 cents a pound by the end of trade on BMD. 

Dec. 1-20 will likely be lower as well, with traders pegging outbound sales at 920,000 tons, compared with 1.03 million tons during the Nov. 1-20 period. Cargo surveyors Intertek Agri Services and SGS (Malaysia) Bhd. may issue Dec. 1-20 shipment data Tuesday.

In the cash market, refined palm olein for January was offered $5 higher at $1,060 while cash CPO for prompt shipment was offered at MYR3,030/ton. Open interest on the BMD was 116,053 lots, versus 116,782 lots Friday. One lot is equivalent to 25 tons. A total of 16,811 lots of CPO were traded versus 18,299 lots Friday, according to a Palmoilhq.com report.