Crude palm oil futures close lower

Crude palm oil futures prices on Bursa Malaysia Derivatives closed lower yesterday on continuing fears that the current swine flu epidemic will reduce demand for grains and meat, dealers said.

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

“However, palm oil prices will likely rebound in the near future as demand has remained steady for palm oil amid reducing stocks,” a dealer said.

Positive export figures, he said, will also boost prices by the end of the week or next week.

Cargo surveyor, Intertek Testing Services reported that Malaysian exports of palm oil products for April 1-25 rose seven per cent to 973,825 tonnes from 908,404 tonnes for the period of March 1-25.