The crude palm oil (CPO) futures market closed lower yesterday on expectation of rising supplies in the next few months, dealers said.
“The immediate trend is towards a bearish-divergence and the market will continue to remain under selling pressure from long-liquidation and unwinding of long-hedge,” a dealer said.
Crude palm oil hit a 7½ month low below RM2,300 a tonne yesterday due to a stronger local currency and concerns about demand for vegetable oils.
A dealer said palm oil production in the next three months may rise as much as 10 per cent due to the seasonal rise in supply.
July 2010 declined RM26 to settle at RM2,380 a tonne, while August 2010 fell RM47 to RM2,311.
September 2010 slid RM45 to RM2,290 and October 2010 depreciated RM40 to close at RM2,282.
Turnover, surged to 11,214 lots from 8,853 lots last Friday while open interests rose to 72,771 contracts from 72,093, previously.
On the physical market, July South lost RM20 to RM2,420.
Source: Business Times