CRUDE palm oil futures on Bursa Malaysia Derivatives closed a shade lower yesterday amid quiet trading in tandem with weakening in other commodities market.
“The market remained quiet as many fund managers were still on Chinese New Year holiday,” Interband Group’s senior palm oil trader Jim Teh said.
The Chinese are the biggest buyers of CPO, and with Chinese markets still closed for the Lunar New Year celebrations, it is quiet, he said.
“Sentiment remains weak due to the holiday season and many traders are avoiding taking new positions,” another dealer said.
Another dealer said reports of weakening trend in overseas market mainly put pressure on prices at the local futures market.
March 2010 shed RM1 to RM2,610, April 2010 eased RM5 to RM2,599, May 2010 decreased by RM4 to RM2,596 and June 2010 slipped RM10 to RM2,590.
However, turnover rose to 14,925 lots from 9,967 lots on Thursday but open interest decreased to 80,465 contracts from 81,347 contracts.
On the physical market, March South was quoted at RM2,610, down RM20 from Thursday price.
Source : Business Times