KUALA LUMPUR: Crude palm oil (CPO) futures contracts closed sharply lower yesterday, under pressure from the current huge stock build-up amid slowing demand.

Yesterday was the seventh consecutive downtrend trading and the pressure on prices are expected to continue, with palm oil stocks projected to rise to well over two million tonnes, said a dealer.

August 2012 and September 2012 fell RM63 to RM2,811 a tonne and RM2,821 a tonne, respectively, while October 2012 dropped RM44 to RM2,863 a tonne and November 2012 eased RM47 to RM2,886.

Volume declined to 28,933 lots from 20,108 lots, while open interest slid to 144,956 contracts from 136,294 contracts before.

Source : Business Times

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