CPO futures easier on technical selling

CRUDE PALM OIL

CRUDE palm oil (CPO) futures on Bursa Malaysia Derivatives closed lower yesterday on technical selling, a dealer said.

"The market was influenced by external factors, despite the fact that there is potential for CPO outputs to decline amid the dry weather," he said.

Johor and Sabah have experienced a prolonged dry spell driven by the El Nino weather condition that can axe yields and trigger a supply squeeze.

April 2010 shed RM55 to RM2,569 per tonne, May 2010 declined RM54 to RM2,550, June 2010 fell RM60 to RM2,535 and July 2010 eased RM53 to RM2,530 per tonne.

"It's more on technicals. The funds have a bearish view on the commodity markets and it's hitting palm oil," a trader based in Kuala Lumpur said.

Another trader said: "Crude oil has started to fall now and it's triggering profit-taking all over the place."

Overall volume rose to 21,730 lots from 15,515 lots on Wednesday while open interest shed to 81,232 contracts from 84,059 contracts previously.

On the physical market, March South went down to RM2,580 per tonne from RM2,630 per tonne on Wednesday.

RUBBER

THE rubber market closed mixed to marginally easier in the absence of any market moving factors.

The market took the cue from the Tokyo rubber futures market which slipped yesterday, tracking price falls in other commodities.

At noon, the Malaysia Rubber Board’s official physical price for tyre-grade SMR 20 ended 1 sen higher at 1,036.5 sen per kg while latex-in-bulk was flat at 739.5 sen per kg.

The unofficial closing price for tyre-grade SMR 20 was 2.5 sen lower at 1,034.5 sen per kg and latex-in-bulk eased one sen to 739.0 sen per kg.

TIN

TIN price rose US$100 to close at US$17,580 (US$1.00 = RM3.34) per tonne on the Kuala Lumpur Tin Market (KLTM), a dealer said yesterday.

The rise was in line with the performance on the London Metal Exchange (LME), where the metal increased US$195 to close at US$17,750 per tonne.

"There was also more demand in the local market," said the dealer.

At the opening bell, bids stood at 110 tonnes while offers amounted to only 50 tonnes with the market dominated by Japanese, European and local traders.

Turnover jumped to 85 tonnes versus 46 tonnes on Tuesday and the premium between the KLTM and the LME narrowed to US$185 per tonne. - Agencies