Commodities Roundup: CPO futures players book profits
Business Times
Wednesday - April 30, 2008
CPO FUTURES
Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives closed lower yesterday as players booked profits following Monday’s run-up, traders said.
The benchmark third-month July 2008 contract dropped RM161 to RM3,349 per tonne from RM3,510 per tonne on Monday.
The traders also described today’s market as “quiet” with players staying on the sidelines and waiting for fresh leads, which included the update on exports figures from cargo surveyors.
Both Intertek Testing Services and Societe Generale de Surveillance will unveil the April export figures today.
According to one of the traders, the local market is expected to bounce back soon on speculative buying following external factors such as high crude oil prices as well as growing demand from China and India.
“Crude oil prices, which play an important role in determining vegetable oil prices, are still on the upward trend, being at US$118 yesterday after hitting close to US$120 per barrel on Monday due to rising geopolitical tensions in several major producing countries, while the weaker US dollar is also lending support to push up CPO prices,” he said.
“Judging by these factors as well as the increasing demand from
At close, the May 2008 CPO futures contract decreased by RM137 to settle at RM3,337 per tonne while June 2008 went down RM160 to RM3,350 per tonne and August 2008 declined RM155 to RM3,355 per tonne.
The day’s volume stood at 8,987 lots, up from 8,660 lots on Monday, while open interest rose to 39,310 contracts from 39,036 contracts previously.
On the physical market, April South was lower at RM3,410 per tonne compared to Monday’s RM3,510 per tonne.
