CRUDE palm oil (CPO) futures on Bursa Malaysia Derivatives closed sharply
lower yesterday in tandem with the drop in prices across most
commodities yesterday, dealers said.
“The market was extremely
volatile today amid concerns over China’s move to further tighten its
monetary controls,” a dealer said.
He added, all eyes are on China, as traders may sell down and liquidate their stocks on hand, if regulations are tightened. Last Friday, the People’s Bank of China raised the required reserve ratio (RRR) by a further 50 basis points.
Meanwhile, the December 2010 contract fell RM33 to RM3,275, January
2011 dropped RM48 to RM3,172, February 2011 shed RM69 to RM3,115 and
March 2011 declined RM79 to RM3,090.
Total volume increased to
26,496 lots from 20,887 lots Monday while open interests rose to 78,001
contracts from 75,732 contracts previously.
On the physical market, November South was unchanged at RM3,300 per tonne from Monday’s price.