Palm Futures Decline Due to Lack of Fresh Leads

CRUDE palm oil (CPO) futures prices on Bursa Malaysia Derivatives

closed lower yesterday due to lack of fresh leads and a decline in other

commodity markets, dealers said.

They said most of the commodity

markets, including oil, rubber and industrial metals, fell in volatile

trade as sentiment dampened following the slide in China’s factory

output after the US Federal Reserve downgraded its outlook for the US

economic growth.

“The local CPO market took the cue from the

weaker performance of other commodities,” a dealer said, adding that

weaker demand for palm oil further weighed down the interest locally.

Exports in the first 10 days of August was 14 per cent lower, with China leading the weakness.

“The

market is now waiting for next Monday as cargo surveyors Societe

Generale de Surveillance and Intertek Testing Services are going to

release their palm oil exports forecast for the first 15 days of

August,” a dealer said.

At close, the contract month for August

2010 fell RM7 to settle at RM2,809 per tonne and September 2010 eased

RM1 to RM2,730 per tonne.

October 2010 lost RM4 to RM2,673 per tonne while November 2010 dropped RM17 to RM2,640 per tonne.

The market breadth however was positive with 20,250 lots transacted compared with only 12,394 lots traded Wednesday.

Meanwhile, open interest dwindled to 63,304 contracts from 63,685 Wednesday.

Of the physical market, August South slide RM15 to close at RM2,785 per tonne.

Source : Business Times

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