Palm Flat Ahead of Hari Raya

Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives closed unchanged yesterday as most players squared off their position ahead of the long weekend holidays, dealers said.

They said the market was taking a break as players were reluctant to take a long position ahead of the holidays starting this Saturday until next Tuesday for the Hari Raya celebrations.
The market will reopen on September 23.

“The market fundamentals remain bearish as palm oil production this month is likely to rise while exports are reducing. Thus, it also encourages players to reduce their holdings,” said one of the dealers.

At the close yesterday, the CPO futures for October 2009 and November 2009 were unchanged from Wednesday’s closing of RM2,210 and RM2,190 per tonne respectively.

For December 2009 and January 2010, the two contract months went up by RM1 each to both close at RM2,182 per tonne.

Volume was lower at 12,959 lots compared to 24,932 lots Wednesday but open interest rose to 88,367 contracts from 88,227 contracts previously.

On the physical market, September South remained at Wednesday’s closing of RM2,230 per tonne. Source : Business Times

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