Palm Futures Retreat from 7-Days Rally

CRUDE palm oil (CPO) futures on Bursa Malaysia Derivatives retreated from its seven-day rally with traders taking profits after prices hit a fresh 33-month high yesterday.

“Traders decided to take profits amid book closure and lack of fresh leads ahead of the new year holidays,” said a dealer, adding that the retreat was expected as the recent rally resulted in steep prices.

“The overall fundamental for the vegetable oil market is still strong as supply constraints remain supportive of the current prices, along with the dry weather in South America that could potentially disrupt soybean production,” the dealer added.

At close, January 2011 lost RM64 to RM3,781 per tonne, February 2011 shed RM53 to RM3,765 per tonne, March 2011 dropped RM45 to RM3,733 per tonne and April 2011 declined RM42 to RM3,708 per tonne.

Turnover increased to 11,599 lots from 10,730 lots recorded yesterday while open interest declined to 88,107 contracts from 88,309 contracts previously.

On the physical market, January South shed RM30 to RM3,780 per tonne.

Source : Business Times

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