CPO Futures Close Lower on Profit Taking

Crude palm oil (CPO) futures on Bursa Malaysia Derivatives ended sharply lower yesterday on heavy profit-taking, dragged down by the decline in US soyoil futures and crude oil prices, dealers said.

“The market was more or less consolidating at the RM2,030 level. The lower prices were mainly due to the weaker soyoil prices as well as those in other futures markets like corn and wheat,” said one of the dealers.

Expectation of less demand from overseas also weighed down local sentiment, he said.

Cargo surveyor Intertek Testing Services (ITS) has estimated a 7.8 per cent decline in exports to 1.23 million tonnes for September from a month ago.

ITS will release its forecast export numbers for the first 10 days of October later next week.

At close yesterday, CPO futures for the October 2009 contract went down RM32 to settle at RM2,130 per tonne and November 2009 dropped RM83 to RM2,048 per tonne.

For other contracts months, December 2009 fell RM78 to RM2,037 per tonne and January 2010 declined RM75 to RM2,040 per tonne.

A total of 9,451 lots were transacted, up from 9,041 lots on Thursday, while open interest declined to 94,276 contracts from 95,200 contracts previously.

On the physical market, October South closed lower at RM2,150 per tonne compared with RM2,200 per tonne on Thursday. Source : Business Times

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