CPO futures slip on profit-taking

 

CPO FUTURES

CRUDE palm oil futures prices on Bursa Malaysia Derivatives Bhd closed lower yesterday on profit-taking as the downtrend of crude oil prices limited earlier gains, said dealers.

The local palm oil futures was higher at mid-day following heavy rainfall and floods in producing areas.

However, crude oil prices fell to US$53 (US$1 = RM3.63) a barrel due to the Organisation of Petroleum Exporting Countries, delaying a decision on a third supply cut to its next meeting later this month. Although volume rose to 13,054 lots from 9,676 last Friday, open interests slipped to 91,506 contracts from 91,820 contracts.

December 2008 declined RM7 to RM1,603 a tonne and January 2009 decreased RM10 to RM1,615.

February 2009 lost RM4 to RM1,628 per tonne and March 2009 went down by RM23 to RM1,617.

On the physical market, December South dropped to RM1,635 per tonne from last week's RM1,670 per tonne.

RUBBER

THE Malaysian rubber market extended its losses yesterday on the back of a downtrend on the Tokyo Commodities market due to global worries of a recession and weakening crude oil prices, a dealer said.

"The market was quiet, in line with the Tokyo futures market," he said.

The dealer added that there was still space for a further downtrend amid continuous concerns over the world's economy.

At noon, the Malaysian Rubber Board official physical price for tyre grade SMR 20 fell 9 sen to 499.5 sen per kg and latex in bulk decreased 6.5 sen to close at 375.5 sen per kg.

The unofficial sellers' closing price for tyre grade SMR 20 dropped 9 sen to 495.0 sen per kg while latex in bulk declined by 5.5 sen to 374.0 sen per kg.

TIN

THE Kuala Lumpur Tin Market (KLTM) was lower by US$450 yesterday to close at US$12,500 per tonne due to a technical correction and the downtrend on the London Metal Exchange (LME), dealers said.

However, they said the losses were limited as the local market was supported by Japanese and local buying, while the Europeans were on the sidelines.

The tin price on the LME, which usually dictates price direction for the KLTM, dropped by US$200 to settle at US$12,400 per tonne.

On the local front, bids totalled 10 tonnes and offers were at 34 tonnes.

Turnover went down to 24 tonnes from last Friday's 28 tonnes.

The premium price differential between the KLTM and the LME narrowed to US$370 per tonne from US$620 per tonne previously. - Bernama