ended sharply lower yesterday on concerns over supply for the upcoming
festive season, dealers said.
According to ECMLibra Investment
Research, several factors will influence the movement of commodity
prices, including the La Nina season, rising wheat and soyabean prices,
and decline in CPO exports with post-festive season pre-stocking.
However,
one of the dealers said that the CPO prices are expected to normalise
in the coming weeks as production will be stepped up this month.
At the close, month of August 2010 went down RM16 to settle at RM2,779 a
tonne, September 2010 lost RM73 to RM2,707, October 2010 dropped RM40
to RM2,678 while November 2010 fell RM20 to RM2,670.
Total
volume was higher at 24,510 lots compared to 23,782 lots last Friday
while open interest rose to 65,512 contracts from 63,861 contracts
previously.
On the physical market, August South declined RM20 to close at RM2,800 a tonne.
