Palm Futures Dragged Down by Profit Taking

Profit taking activities dragged crude palm oil (CPO) futures to end

lower yesterday on Bursa Malaysia Derivatives.

The strengthening

ringgit, which made the commodity unattractive for both hedge funds and

importers, coupled with market expectation of less demand from China,

India, and Europe weighed down on sentiment.

The market was also

expected to reel from a further correction due to a oversupply situation

expected at the end of the month, said a dealer.

“Although output is improving, yield was still affected by the El-Nino

weather phenomenon,” another dealer said.

Players were also

sidelined awaiting the release of export data by the Malaysian Palm Oil

Board on April 10.

April 2010 fell RM22 to RM2,550 per tonne, May

2010 declined RM30 to RM2,520 per tonne, June 2010 decreased RM39 to

RM2,500 and July 2010 fell RM35 to RM2,495.

Volume rose to 17,847

lots from 12,606 lots Wednesday while open interest increased to 78,915

contracts from 78,794 contracts previously.

In the physical

market, April South lost RM10 to settle at RM2,560 per tonne.

Source : Business Times

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