Palm Futures Drop Sharply on Weak Sentiment

Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives ended sharply lower yesterday on weak sentiment following the decline in soyabean oil prices on China’s Dalian Exchange, dealers say.

The US soyabean futures and crude oil also saw a sharp decline last Friday.

A dealer said palm oil export figures for the first 15 days of September were expected to show a big fall.

“More pressure on the prices are expected then,” he said.

He said the market would see a strong support at RM2,000 per tonne.

At the close yesterday, the CPO futures for September 2009 and October 2009 fell by RM69 each to RM2,141 and RM2,111 per tonne respectively, November 2009 slipped RM75 to RM2,070 and December 2009 declined RM68 to RM2,064.

Volume rose to 16,958 lots from 12,382 last Friday; while open interests increased to 86,315 contracts from 85,950 previously.

On the physical market, September South declined to RM2,170 per tonne from RM2,250 on Sunday. Source : Business Times



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