CPO Futures Easier on Technical Selling

CRUDE palm oil (CPO) futures on Bursa Malaysia Derivatives closed
lower yesterday on technical selling, a dealer said.

“The market

was influenced by external factors, despite the fact that there is

potential for CPO outputs to decline amid the dry weather,” he said.

Johor

and Sabah have experienced a prolonged dry spell driven by the El

Nino weather condition that can axe yields and trigger a supply squeeze.

April 2010 shed RM55 to RM2,569 per tonne, May 2010 declined RM54 to

RM2,550, June 2010 fell RM60 to RM2,535 and July 2010 eased RM53 to

RM2,530 per tonne.

“It’s more on technicals. The funds have a

bearish view on the commodity markets and it’s hitting palm oil,” a

trader based in Kuala Lumpur said.

Another trader said: “Crude

oil has started to fall now and it’s triggering profit-taking all over

the place.”

Overall volume rose to 21,730 lots from 15,515 lots

on Wednesday while open interest shed to 81,232 contracts from 84,059

contracts previously.

On the physical market, March South went

down to RM2,580 per tonne from RM2,630 per tonne on Wednesday.

Source : Business Times

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