Palm Futures Dip as Dealers Take Profits

KUALA LUMPUR: Crude palm oil futures on Bursa Malaysia Derivatives closed lower yesterday on extended profit-taking activities, dealers said.

They said buyers were reluctant to hold major positions on expectations of a weaker global economy as India and China might record softer growth this year.

“All this bullish news is not something that people just realised recently, it has been known for a while. Some of it has already been priced in,” said Ivy Ng, an analyst with Malaysia’s CIMB Investment Bank.
The April 2012 contract lost RM28 to RM3,568 while May 2012 shed RM53 to RM3,517.

June 2012 was RM49 weaker at RM3,510 a tonne and July 2012 declined RM43 to RM3,497 a tonne. Volume rose to 35,013 lots from 26,342 lots while open interest fell to 110,645 from 118,153 contracts.

On the physical market, April South shed to RM3,530 from RM3,570.

Source: Business Times

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