KUALA LUMPUR: Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives closed lower yesterday in anticipation of higher production, thus restricting gains, a dealer said.
Phillip Futures Sdn Bhd derivative product specialist David Ng said the Malaysian Palm Oil Board’s report would be released on Monday and market talks indicated that there would be higher production compared to the June data.
He also attributed the situation to external factors such as negative sentiments amid escalating tension in West Asia.
At the close, spot month August 2014 eased RM25 to RM2,291 a tonne, September 2014 slipped RM20 to RM2,257 a tonne, October 2014 fell RM21 to RM2,233 a tonne, and November 2014 declined RM22 to RM2,230 a tonne.
The volume increased to 39,121 lots from 21,742 lots on Thursday while open interest rose to 266,354 contracts from 248,820 contracts previously.
On the physical market, August South was RM30 lower at RM2,310 per tonne from RM2,340 per tonne on Thursday. Bernama
Source : New Straits Times