CPO futures lower on lack of strong buying

CRUDE palm oil (CPO) futures on Bursa Malaysia Derivatives closed lower yesterday on lack of a strong buying interest, dealers said.

They said the weaker overnight soyaoil prices on the Chicago Board of Trade and the Dalian Commodity Exchange encouraged players to trim their position.

At the close, April fell RM35 to settle at RM2,599, May declined RM34 to RM2,565 per tonne, June dropped RM41 to RM2,534 and July eased RM37 to RM2,521.

Turnover, however, increased to 14,711 lots from 10,656 lots on Thursday and open interests rose to 78,501 contracts from 78,414 contracts previously.

On the physical market, April South slipped to RM2,610 on Thursday.

"I wouldn't say it is a bear market but players are taking out weather premium from palm prices which had caused prices to move up," said a trader.

Traders expect the market to test lower levels around RM2,500 next week on the view that supply may increase as rains would help boost production.

RUBBER

THE Malaysian rubber market closed higher yesterday on strong demand, dealers said.

They said firmer rubber prices on the Tokyo Commodity Exchange also lifted buying sentiment in the local market.

"The market fundamentals remain firm following tight supply conditions in major producing countries,' a dealer said.

At noon, the Malaysia Rubber Board’s official physical price for tyre-grade SMR 20 closed 7.5 sen higher at 1,044.5 sen per kg and latex-in-bulk rose 5 sen to 739.5 sen per kg.

The unofficial closing price for tyre-grade SMR 20 gained 8 sen to 1,048.5 sen per kg and latex-in-bulk rose 4.5 sen to 741.5 sen per kg.

TIN

THE Kuala Lumpur Tin Market (KLTM) closed higher yesterday by US$50 (US$1.00 = RM3.34) to settle at US$17,540 per tonne, despite the downtrend on the London Metal Exchange (LME), dealers said.

The tin price on the LME, which usually influences price direction for the KLTM,fell US$90 to US$17,460 per tonne.

"The local tin market was firmer today with lots of bidding,especially from foreign buyers," a dealer said.

On the local front, buyers bid for 75 tonnes while sellers offered 40 tonnes.

Yesterday turnover increased to 56 tonnes from 45 tonnes on Thursday. The price differential between the KLTM and the LME widened to a premium of US$435 per tonne from US$295 per tonne previously. - Bernama