Palm Futures Dip on Weaker Demand Worries

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

closed lower yesterday on speculation of weaker demand, dealers said.

They

said Indonesia’s move to cut export tax for CPO in May to 17.5 per cent

from 22.5 per cent this month could potentially attract demand away

from Malaysia.

“There is a lack of strong leads to push CPO

prices higher at the moment. The stronger ringgit also capped gains in

CPO prices,” a dealer said.

May 2011 and August 2011 fell RM15 each to RM3,360 per tonne and

RM3,310 per tonne, June 2011 declined RM20 to RM3,335 per tonne and July

2011 shed RM3 to RM3,312 per tonne.

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