Palm Futures Near 6-Weeks Low

Crude palm oil (CPO) futures on Bursa Malaysia Derivatives were weakyesterday, hitting almost a six-week low as sentiment was weighed down by easier soybean and crude oil price, dealers said.

The favourable export figure for the first 15 days of January failed to provide support for prices.

“Overall, the market sentiment was still weak as players remained worried about high palm oil stocks,” one dealer said.

Cargo surveyor Societe Generale de Surveillance estimated palm oil exports for the first half of January to have gone up 2.6 per cent to 643,091 tonnes from 626,934 tonnes shipped during December 1-15.

Oil price meanwhile was below US$79 per barrel on Friday on the back of weaker U.S. retail sales figures, while US soyoil for March delivery slipped 0.6 per cent.

On the local side, the February 2010 and March 2010 CPO futures contracts were both down RM40 at RM2,467 per tonne and RM2,490 per tonne, respectively.

April 2010 and May 2010 declined RM49 each to RM2,495 per tonne and RM2,496 per tonne, respectively.

The day’s turnover was higher at 23,897 lots as against 22,080 lots recorded on Thursday while open interest fell to 75,701 contracts from 76,191 contracts previously.

On the physical market, January South slipped to RM2,490 per tonne from RM2,510 per tonne yesterday.

Source : Business Times

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