KUALA LUMPUR: Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives slipped yesterday to a one-week low on market expectations of rising stockpiles in Malaysia, the world’s second biggest producer.
Kenanga Investment analyst Alan Lim Seong Chun said the upside will be capped by the upcoming Malaysian Palm Oil Board inventory data, which the company expect will remain above the two million tonnes psychological range.
“The downside will be supported by CPO’s above average discount of US$290 a tonne against soyabean oil,” he said.
Spot month September 2012 fell RM52 to RM2,888 a tonne, October 2012 was RM72 lower at RM2,938 a tonne, November 2012 declined RM68 to RM2,990 a tonne and December 2012 dwindled RM64 to RM3,033 a tonne.
Source : Business Times