Monday, 1 April 2013

CPO Falls to 2-Month Low on Europe, Technicals

Crude palm oil futures on Malaysia’s derivatives exchange end down reflecting investor concerns that Europe’s debt crisis and slow Chinese economy could curb demand.

"The dip below MYR2,350/ton saw some investors scrambling to liquidate positions and cut losses while some added short positions," a commodities broker in Kuala Lumpur says adding that bearish technical signals could drag prices to MYR2,230-MYR2,250/ton in coming sessions.

Still, some analysts reckon palm oil’s hefty $330/ton discount to soyoil and likely lower end-March stocks could prevent the prices from falling further.

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