CPO futures down on high inventories

KUALA LUMPUR: Crude palm oil futures prices on Bursa Malaysia Derivatives closed lower yesterday due to rising inventories as well as concerns over global expansion in competing oilseed that may shift demand away from palm oil.

The spread between soya oil and palm oil narrowed to US$150 from US$200, which may weigh on CPO prices.

Spot month October 2013 decreased RM15 to RM2,340, November 2013 fell RM10 to RM2,306, December 2013 eased RM9 to RM2,302 and January 2014 dropped RM10 each to RM2,302 a tonne. 

Volume decreased to 21,326 lots from 35,439 lots while open interest dropped to 176,929 contracts versus 192,196 contracts. 

On the physical market, October South eased RM10 to RM2,340 a tonne.

Source : Business Times 

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