CRUDE palm oil (CPO) futures on Bursa Malaysia Derivatives closed lower in quiet trading due to lack of interest.
“The market remained quiet. A majority of fund managers remained sidelined while others were still away for the Chinese New Year.
“Their absence was greatly felt by the market, but it was a blessing in disguise as lower prices helped clear the current high stocks, said Interband Group’s senior palm oil trader. Another dealer said investors refrained from taking up fresh positions ahead of Thursday’s release of palm oil export data.
Traders said there was talk in late trade that the Intertek Testing Services export data may show a figure of 1.089 million tonnes, but earlier on, the rumoured figure was 1.03 million tonnes.
“I think the market reacted to that earlier number,” said a trader with an investment bank in Kuala Lumpur.
“The market is overdone and the chart indicates exhaustion. With crude oil weakening, the market eased off,” another trader said, adding that the pressure also come from long liquidation.
Some other traders said an export drop is expected because February is a short month, but the market needs a healthy correction after its recent rise.
March shed RM56 to RM2,600, April eased RM54 to RM2,590, May decreased RM45 to RM2,590 and June slipped RM47 to RM2,580.
On the physical market, March South was quoted at RM2,610, down RM50 from Tuesday.
“The market remained quiet. A majority of fund managers remained sidelined while others were still away for the Chinese New Year.“Their absence was greatly felt by the market, but it was a blessing in disguise as lower prices helped clear the current high stocks, said Interband Group’s senior palm oil trader. Another dealer said investors refrained from taking up fresh positions ahead of Thursday’s release of palm oil export data.
Traders said there was talk in late trade that the Intertek Testing Services export data may show a figure of 1.089 million tonnes, but earlier on, the rumoured figure was 1.03 million tonnes.
“I think the market reacted to that earlier number,” said a trader with an investment bank in Kuala Lumpur.
“The market is overdone and the chart indicates exhaustion. With crude oil weakening, the market eased off,” another trader said, adding that the pressure also come from long liquidation.
Some other traders said an export drop is expected because February is a short month, but the market needs a healthy correction after its recent rise. March shed RM56 to RM2,600, April eased RM54 to RM2,590, May decreased RM45 to RM2,590 and June slipped RM47 to RM2,580.
Turnover fell to 11,713 lots from 15,847 lots on Tuesday but open interest increased to 83,180 contracts from 82,196 contracts on Tuesday.
On the physical market, March South was quoted at RM2,610, down RM50 from Tuesday.
No comments:
Post a Comment