KUALA LUMPUR, Aug 29 (Bernama) — Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives closed lower Wednesday on Indonesia’s plans to raise its export tax on the commodity to ten percent in September, dealers said.

They said in addition to tax increase, lower soyaoil prices had also affected the CPO prices.

Indonesia, the world’s largest palm oil producer, said the export tax increase was to reduce overseas shipments and ensure adequate local supply.

A dealer said the poor performance of the global stock markets has also pulled the commodity prices down.

He said the market fundamentals were, however, still strong as prices were traded range-bound — between RM2,400 and RM2,450 level — on strong festive demand.

At the close, the CPO futures for Sept ‘07 slipped RM27 to RM2,463 per tonne, Oct ‘07 decreased RM39 to RM2,406, Nov ‘07 fell RM34 to RM2,378 and Dec ‘07 went down RM32 to RM2,365.

Volume declined to 9,503 lots from 9,861 lots yesterday while open interests declined to 54,578 contracts from 54,953 contracts previously.

The physical market saw CPO for Sept shipment in the southern region declined RM25 to RM2,475 per tonne compared with RM2,500 yesterday.

– BERNAMA

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