CPO hits 10-year high on sustained soyoil rally

A global shortage of oilseeds, which are crushed to provide everything from cooking oil to biodiesel, seems set to worsen after hot, dry weather parched fields in Argentina and rains soaked beans in Brazil.

KUALA LUMPUR: Palm oil extended gains to close at a new 10-year high before a monthly report on Malaysian reserves and output, with stronger soyoil because of weather woes in South America providing support to the market.

While prices dipped into negative territory at one point yesterday, they rebounded to cap their fifth daily gain and appear to have the psychological level of RM4,000 per tonne in their sights, a mark last seen in 2008.