CPO Futures Closed 0.4 Percent Lower

MALAYSIAN crude palm oil futures dropped 0.4 per cent yesterday

ahead of the long weekend as market participants scaled back their

expectations for January exports due out next week, traders said.

A big rise is key to easing inventories in the world’s number 2

palm grower from a 13-month top in December, which together with ample

global vegetable oil supplies pressured palm prices in recent weeks.

“Initially people talked about 1.5 million tonnes, then 1.41

million tonnes. But I think the latter figure is more realistic,” said a

trader with a commodities brokerage in Kuala Lumpur.


The benchmark April contract on the Bursa Malaysia Derivatives

Exchange settled down RM9 at RM2,442 per tonne. Traded volume was 14,890

lots of 25 tonnes each.

Another trader with a Kuala

Lumpur-based investment bank said end-January Malaysia’s palm oil stock

may ease to around 2.1 million tonnes if exports hit 1.41 million

tonnes.

“It (stock) is lower than December but it is still

above the 2.0 million psychological benchmark,” he said.

On the

physical market, February South declined to RM2,470 per tonne from

RM2,480 per tonne on Thursday.

Source : Business Times

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