CPO Futures Lower on Profit Taking

CRUDE palm oil (CPO) futures contract on Bursa Malaysia Derivativesclosed lower on profit-taking after Monday’s strong gains, dealers said.

However, losses were capped as the underlying market was still firm as the commodity continued to be in short supply.

“The market’s fundamental is still intact on expectations of bullish export data to be released today and continued demand from China and India,” said one dealer.

He added that CPO prices are expected to be traded above the RM2,400 per tonne level.

December 2009 declined RM15 to RM2,450 per tonne, January 2010 decreased RM14 to RM2,466 per tonne, February 2010 lost RM8 to RM2,478 per tonne while March 2010 dipped RM16 to RM2,483 per tonne.

Volume was lower at 16,312 lots from yesterday’s 17,372 lots while open interest totalled 94,862 contracts. On the physical market, November South slipped to RM2,410 per tonne from RM2,400 per tonne on Monday.

Source : Business Times

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