CPO Futures Decline As Exports Drop

Crude palm oil futures prices on Bursa Malaysia Derivatives declined slightly yesterday in reaction to weaker export data, dealers said.

Cargo surveyor Intertek Testing Services estimated a drop by 7.6 per cent in the export of Malaysian palm oil products for the first 25 days of August at 992,319 tonnes compared with 1,074,329 tonnes shipped in the same period of July.

Meanwhile, Societe Generale de Surveillance estimated that exports of Malaysian palm oil products for the period fell 14.9 per cent to 939,456 tonnes.

Dealers said market players also remained concerned over slow demand and stock build up as production improved.

At close, September 2010 fell RM30 to RM2,640 per tonne, October 2010 decreased RM29 to RM2,541 per tonne, November 2010 went down RM24 to RM2,486 per tonne and December 2010 was RM13 lower at RM2,468 per tonne.

Total volume rose to 29,218 lots from 28,938 lots the previous day while open interests decreased to 68,654 contracts from 69,199 contracts earlier.

On the physical market, August South was down RM30 at RM2,670 per tonne from RM2,700 per tonne the previous day. Source: Business Times

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