CPO futures ease on increased output expectations

CRUDE palm oil (CPO) futures prices closed lower yesterday amid expectations of increased production in the upcoming months, a dealer said.

He said the prices were also easier in line with the downtrend in crude oil and soyabean prices in the global market.

April was down RM35 at RM3,385 a tonne, May 2011 shed RM27 to RM3,370, June lost RM25 to RM3,348 and July eased RM45 to RM3,327.

Turnover went down to 25,256 lots from 31,116 lots yesterday, while open interest increased to 102,071 contracts from 101,855 contracts previously.

On the physical market, April South slipped RM40 to RM3,400 a tonne.

According to a Reuters report, data showed that March palm oil stocks in Malaysia rose to a three-month high on production surging nearly 30 per cent. Global palm oil production was about 45 million tonnes in 2010.

Source: Business Times

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