Business Times CPO futures close sharply lower

CPO

Crude palm oil (CPO) futures on Bursa Malaysia Derivatives closed sharply lower yesterday on concerns of the impact from the swine flu epidemic in Mexico on the grains and meat market, dealers said.

Vegetable oil prices have a tendency to move in tandem with grains prices.

The market was also influenced by the fall in the US soya oil prices.

"However, prices of palm oil should rebound faster than soya oil as importers prefer palm oil from Malaysia and Indonesia which are considered as being more safe sources of vegetable oil amid the current outbreak of the epidemic," one dealer said.

May 2009 contract fell RM120 to RM2,655 per tonne, June 2009 declined RM100 to RM2,560 per tonne, July 2009 decreased RM104 to RM2,481 per tonne and August 2009 lost RM105 to RM2,418 per tonne.

Turnover was lower at 20,253 lots from 23,396 lots last Friday while open interests was lower at 85,708 contracts from 86,931 contracts.

As for the physical market, May South fell to RM2,690 per tonne from RM2,820 per tonne last Friday.