KUALA LUMPUR: Crude palm oil (CPO) futures prices on Malaysia Derivatives Exchange extended losses to close lower yesterday due to rising output and inventories in producing countries.
Phillip Futures Sdn Bhd derivative product specialist David Ng said that easing demand for the commodity and appreciation of the ringgit against the US dollar also pressured the CPO prices.
“However, short-covering and bargain hunting amid rebound in the soyaoil prices on the Chicago Board of Trade are seen limiting the downside in CPO futures,” he said.
As for August CPO contract, a decline below RM2,375 would extend to weakness towards RM2,345 to RM2,320 level, while on upside, a move above RM2,470 would lead to rebound towards RM2,500 to RM2,530 level,” he said.
“Buyers remain positive until price sustain above RM2,375 and is likely to rise towards RM2,470,” he said.
June 2014 fell RM10 to RM2,410 a tonne, July 2014 decreased RM6 to RM2,416, while August 2014 eased RM2 to RM2,412 and Septemeber 2014 erased RM3 to RM2,411.
Volume dropped to 27,327 lots from 27,646 last Friday while open interest narrowed to 198,781 contracts from 202,554 contracts previously.
Source : New Straits Times