CPO futures closes lower

CPO futures closes lower
Business & Markets 2013
Written by Bernama
Tuesday, 17 December 2013 20:37

KUALA LUMPUR (Dec 17): Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed lower today, on discouraging palm oil shipments in the first half of December.

Cargo surveyors reported that exports fell between 12-14 per cent compared with a month ago, and this coupled with lack of demand, depressed prices.

Phillip Futures Sdn Bhd Derivative Product Specialist David Ng also attributed the reduced demand to weak market sentiment and narrow price spread between palm oil and soyoil.

However, Ng said the day's losses were limited due to the depreciating ringgit against the US dollar, and the likely fall in December's production.

At close, January 2014 was RM9 lower at RM2,532 a tonne, February 2014 eased RM7 to RM2,561 a tonne, March 2014 fell RM4 to RM2,576 a tonne, and April 2014 eased RM2 to RM2,581 a tonne.

Turnover rose to 34,210 lots from Monday's 28,749 lots, while open interest increased to 185,666 contracts, from 180,724 contract yesterday.

On the physical market, December South was RM10 lower, at RM2,560 per tonne.