KUALA LUMPUR: Crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives closed lower today after four trading days of gains on profit-taking ahead of the weekend, dealers said.
However, the optimism that festive-driven consumption will bolster exports of vegetable oil have capped losses.
Phillip Futures Sdn Bhd product specialist David Ng said CPO futures contracts saw a decline in profit-booking amid overnight fall in CBOT soyoil prices.
“However, good export demand and depreciation of the ringgit against the dollar are likely to limit losses,” he told Bernama today.
On the technical chart for the August CPO contract, Ng said a sustained move above 2,615 would resume the up move towards 2,655-2,690 levels.
“On downside, 2,575 and 2,540 remain the supports. Only a decline below 2,540 would lead to weakness towards 2,505-2,475 levels,” he added.
At close, June 2014 slipped RM33 to RM2,629 a tonne, July 2014 declined RM35 to RM2,592, August 2014 fell RM34 to RM2,580 a tonne, while September 2014 lost RM31 to RM2,574 a tonne.
Turnover rose to 30,881 lots from 29,706 lots on Thursday while open interest was lower at 214,777 contracts against yesterday’s 211,953 contracts.
On the physical market, May South slipped RM15 to RM2,650 a tonne.– Bernama
Source : New Straits Times