CPO Futures Lower on Strong Buying

CRUDE palm oil (CPO) futures on Bursa Malaysia Derivatives closed
lower yesterday on lack of a strong buying interest, dealers said.

They said the weaker overnight soyaoil prices on the Chicago Board of

Trade and the Dalian Commodity Exchange encouraged players to trim

their position.

At the close, April fell RM35 to settle at

RM2,599, May declined RM34 to RM2,565 per tonne, June dropped RM41 to

RM2,534 and July eased RM37 to RM2,521.


Turnover, however, increased to 14,711 lots from 10,656 lots on

Thursday and open interests rose to 78,501 contracts from 78,414

contracts previously.

On the physical market, April South

slipped to RM2,610 on Thursday.

“I wouldn’t say it is a

bear market but players are taking out weather premium from palm prices

which had caused prices to move up,” said a trader.

Traders

expect the market to test lower levels around RM2,500 next week on the

view that supply may increase as rains would help boost production.

Source : Business Times

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