CPO futures down on profit-taking

CRUDE palm oil (CPO) futures on Bursa Malaysia Derivatives ended lower yesterday due to profit-taking following the recent run-up, a dealer said.

However, the market fundamentals remained firm on expectations of a bullish industry outlook for the year due to strong demand.

Malaysian Palm Oil Council chief executive officer Tan Sri Dr Yusof Basiron said CPO price will likely touch RM3,000 per tonne in the second half of this year due to production shortfalls.
The price will hover between RM2,600 and RM3,000 per tonne this year, he said.

At the close, March 2010 and April 2010 fell RM37 each to RM2,692 per tonne and RM2,672 per tonne, respectively.

May 2010 fell RM25 to RM2,660 per tonne and June 2010 declined RM28 to RM2,642 per tonne.

Total volume rose to 17,096 lots from 11,722 lots on Wednesday while open interest fell to 81,554 contracts from 82,217 contracts previously.

On the physical market, March 2010 dipped to RM2,700 per tonne from RM2,720 per tonne on Wednesday.

- Business Times