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Palm oil rises 2% on spot demand

Speculators take fresh positions on hopes of Chinese stimulus measure

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Press Trust of India New Delhi
Last Updated : Jan 24 2013 | 2:11 AM IST

Crude palm oil prices rose by Rs 11 to Rs 577.50 per 10 kg in futures trade today as speculators created fresh positions on the back of a pick-up in spot market demand amid low stocks.

On the Multi Commodity Exchange, crude palm oil for August delivery rose by Rs 11, or 1.94%, to Rs 577.50 per 10 kg, with a trading volume of 889 lots.

The July contract moved up by Rs 10.10, or 1.78%, to Rs 574.80 per 10 kg, with a business turnover of 238 lots.

Analysts said fresh buying by speculators on hopes of pick-up in spot market demand amid hopes of possible stimulus measures by China that could boost growth and commodity demand as China's gross domestic product grew 7.6% in the second quarter of 2012.

Meanwhile, in Malaysia, September-delivery palm oil rose by 2.80% to 3,152 ringgit ($991) a tonne on the Malaysia Derivatives Exchange, the biggest gain for the most-active contract since June 25.

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First Published: Jul 16 2012 | 3:48 PM IST

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