CPO Futures Down on Slow Demand

KUALA LUMPUR: Crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives closed lower yesterday in thin trading due to slow demand.

Phillip Futures Sdn Bhd derivative product specialist David Ng said the market saw profit-booking at a higher level amid the slow buying interest from India, the world’s largest palm oil importer.

“However, the prices remain supported by a weaker ringgit against US dollar, expectations of a fall in December output and potential demand from China in the coming days,” he said.

January 2014 fell RM8 to close at RM2,603, February 2014 eased RM1 to RM2,624 and March 2014 declined RM1 to RM2,631. April 2014 was unchanged at RM2,634 a tonne.

Turnover dipped to 9,980 lots from Friday’s 19,149 lots, while open interest decreased to 164,766 contracts from 173,376 contracts previously.

On the physical market, January South was unchanged at RM2,610 a tonne.

Source : Business Times

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