CPO Futures Succumb to Downward Pressure

DRUDE palm oil futures on Bursa Malaysia Derivatives closed lower yesterday after the earlier uptrend, succumbing to selling pressure late

in the second trading session, dealers said.

“It is a healthy

correction cum profit taking with a hint that prices would go up after

this technical correction,” a dealer said.

She said market talk

also suggests that the exports data to be released tomorrow will show a

higher volume in the range of 1.356 million tonnes.

The June 2011 and July 2011 contracts both declined RM25 to RM3,519 per

tonne and RM3,465 respectively, while August 2011 fell RM30 to RM3,408

and September 2011 lost RM28 to RM3,380.

Turnover declined to

16,739 lots from 24,568 lots last Friday while open interest fell to

105,790 contracts from 106,927 contracts previously.

On the physical market, June South was flat at RM3,520 a tonne from last Friday’s recorded price.

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