CPO

CPO: GoldenAgri, Indofood Agri, First Resources etc could possibly see positive momentum today, as Palm oil gained to the highest levels in 35 mths on concerns that a La Nina weather event that caused flooding in Asia and drought in South America may persist for a further four mths. April-delivery futures in Kuala Lumpur rose 2.3% to end at Rm3,895/mt. Earlier, the price climbed as much as 2.7% to Rm3,910/mt, the highest level since Mar08….

DBS Vickers note that “The La Nina is still on going and although it’s probably passed its peak, it’s still quite strong,” and rains are not over yet. Climate indicators continue to indicate a strong, mature La Nina, although there are clear signs the event has passed its peak.