CPO Futures Dragged Down by Export Data

CRUDE palm oil (CPO) futures on the Bursa Malaysia Derivatives ended mostly lower yesterday, weighed down by the unfavourable export figures for September and the decline in soyoil prices, dealers said.

Cargo surveyor Intertek Testing Services forecast a 7.8 per cent drop in exports in Malaysian palm oil products for September to 1.23 million tonnes from 1.33 million tonnes shipped in August.

Meanwhile, another cargo surveyor Societe Generale-de-Surveillance estimated exports to decline by 2.2 per cent to 1.27 million tonnes from 1.3 million in August.

“Overall sentiment remains weak with most players sidelined and lower exports numbers also contributed to the losses,” a dealer said.

Prices were also in tandem with the losses registered on the US crude oil and soybean futures markets on the back of a stronger greenback.

At close, the CPO futures for October 2009 contract lost RM18 to settle at RM2,136 per tonne, November 2009 eased RM16 to RM2,107 per tonne and January 2010 declined RM7 to RM2,103 per tonne.

The December 2009 contract, however was flat at RM2,105 per tonne.

Turnover was slightly lower at 16,056 lots compared with 16,248 lots recorded on Tuesday while open interest rose to 92,125 contracts from 88,667 contracts previously.

On the physical market, September South was unchanged at RM2,170 per tonne.

Source : Business Times

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