KUALA LUMPUR: Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives closed lower yesterday on expectation of higher production, a dealer said.

Phillip Futures Sdn Bhd Derivative Product Specialist, David Ng, said there was market perception that the CPO production in July would be higher than in June.

He also said that the narrower spread between soyabean oil and palm oil was weighing down on the CPO prices.

“However, a weaker ringgit is seen supportive for the CPO prices,” he said.

Going forward, he said the support level for palm oil was seen at RM2,220 and the immediate resistance at RM2,280.

At the close, spot month August 2014 and September 2014 both eased RM10 each to RM2,318 a tonne and RM2,279 a tonne, respectively, October 2014 fell RM7 to RM2,247 a tonne and November 2014 declined RM9 to RM2,244 a tonne.

Volume decreased to 25,731 lots from 27,255 lots on Tuesday, while open interest slipped to 252,108 contracts from 253,804 contracts previously.

On the physical market, August South was RM10 lower at RM2,340 per tonne from RM2,350 per tonne on Tuesday. Bernama

Source : Business Times