CPO Futures End Slightly Higher

PRICES of crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives closed slightly higher yesterday on speculative trade in a bearish market amid higher stocks, traders said.

“Speculators have helped to hold the price at the current level,” said Interband’s senior trader Jim Teh.

He also said that there was not much trade from foreign buyers yesterday.

Malaysia’s palm oil stocks in October 2009 hit a 10-month high of 1.974 million tonnes from a revised 1.579 million tonnes in September.

“I foresee the market going down a bit. Tomorrow will be profit-taking,” said one of the traders.

At close, the CPO futures for November 2009, December 2009 and February 2010 dropped RM17 each to be at RM2,192, RM2,232 and RM2,272 per tonne respectively while the January 2010 contract declined RM10 to RM2,245 per tonne.

Turnover rose to 15,456 lots from 5,092 lots on Wednesday while open interest declined to 94,523 contracts from 95,142 contracts previously.

On the physical market, November South added RM40 to settle at RM2,220 per tonne.

Source : Business Times

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