CPO Futures Down on Profit Taking

PRICES of crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives declined yesterday on profit-taking after Wednesday advance, dealers said.

“The fall in CPO futures prices today was also due to the softer market tone for US soybean futures yesterday,” said one of the dealers.

He said the market was expecting US soybean futures prices to fall further during the week due to better weather conditions in the US.

“Many buyers were also taking the opportunity to cash in profits with the fall of crude oil prices today after Wednesday’s advance in CPO futures prices,” he added.

The global crude oil price dropped to around US$79 per barrel (US$1.00 = RM3.44) yesterday as traders took advantage of the strengthening US dollar to take profits.

At close on the CPO futures contracts market, November 2009 declined RM25 to RM2,175 per tonne, December 2009 dropped RM11 to RM2,221 per tonne, January 2010 lost RM13 to RM2,247 per tonne and February 2010 went down RM14 to RM2,266 per tonne.

Turnover decreased to 12,263 lots from 17,110 lots on Wednesday and open interest declined to 94,529 contracts from 95,297 contracts on Wednesday.

On the physical market, December South dropped to RM2,180 per tonne from RM2,240 per tonne on Wednesday. Source : Business Times

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