CRUDE palm oil (CPO) futures on Bursa Malaysia Derivatives closed sharply lower yesterday due to the proposed cut in export duty on the edible oil by Indonesia, dealers said.

September 2011 contract fell by RM31 to close at RM3,108 per tonne, October 2011 decreased RM40 to RM3,030, while November and December 2011 declined by RM42 each to RM2,994 and RM2,980 respectively.

Turnover increased to 20,899 lots from 19,825 lots yesterday while open interest rose to 130,218 contracts from 129,451 contracts previously.

On the physical market, September South declined RM35 to RM3,115 per tonne.

Source: Business Times