CPO Futures Close Lower

CRUDE palm oil (CPO) futures on Bursa Malaysia Derivatives closed

lower yesterday, in line with the weaker crude oil and soyaoil prices,

dealers said.

“The weaker crude oil price weighed down market

sentiment,” a dealer said.

However, he added, the CPO price is

expected to rebound, on expectation of higher demand for the coming

fasting month and Aidilfitri celebration.

“The market is looking to see how far the Malaysian benchmark can go. We

expect it to go as low as RM2,400 because crude oil has been losing

ground,” said a trader with a foreign commodities brokerage.

June

2010 declined RM19 to settle at RM2,541 per tonne, July 2010 fell RM19

to RM2,496 per tonne, August 2010 eased RM25 to RM2,449 per tonne and

September 2010 depreciated RM29 to RM2,419 per tonne.

Volume,

however, increased to 14,255 lots from 10,094 lots last Friday while

open interests decreased to 69,345 contracts from 69,501 contracts

previously.

On the physical market, June South was at RM2,550

per tonne compared to RM2,570 per tonne previously.

Source : Business Times

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