PRICES of crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives closed lower yesterday due to higher stock levels, dealers said. The Malaysian Palm Oil Board said on Tuesday that palm oil stocks in October 2009 hit a 10-month high 1.974 million tonnes from a revised 1.579 million in September. One of the dealers said that after the recent festive seasons, demand for the commodity had been going down.

“It is likely to pick up in two months’ time as the Chinese New Year is nearing. Chinese traders are likely to stock up palm oil,” he said. At close, CPO futures for the November 2009 contract month rose RM1 to settle at RM2,175 per tonne while December 2009 dropped RM9 to RM2,215 per tonne, January 2010 declined RM7 to RM2,235 per tonne and February 2010 fell RM5 to RM2,255 per tonne. Turnover declined to 5,092 lots from 11,963 lots on Tuesday and open interest rose to 95,142 contracts from 94,207 contracts previously. On the physical market, November South was unchanged at Tuesday’s settlement of RM2,180 per tonne. Source : Business Times