CPO futures plunge to five-year low

Publish date: Fri, 15 Aug 2014, 01:50 AM

KUALA LUMPUR: Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives plunged to five-year low tracking huge losses on Chicago soyabean oil.

Phillip Futures specialist, David Ng, said the difference between the palm oil and soya oil prices has narrowed and this aggravated selling pressure in light of current prevailing pessimism in the market.

Both spot month August 2014 and September 2014 eased RM49 each to RM2,166 and RM2,150 a tonne, respectively, while October 2014 declined RM43 to RM2,133 a tonne and November shed RM41 to RM2,134 a tonne.

Volume rose to 43,351 lots from 40,012 lots previously while open interest fell 205,054 contracts from 278,831 previously.

On the physical market, August South slipped RM2,160 a tonne from RM2,240 on Wednesday. Bernama

Discussions
1 person likes this. Showing 3 of 3 comments

haikeyila

remember dorab mistry and those 'experts' insisting that prices will go up? and people still listen to them..

2014-08-16 23:15

speakup

first thing when i read it is FEAR. when there is fear..... TIME TO BUY PLANTATIONS! NOW!

2014-08-16 23:23

calvintaneng

Speakup,

I think you better stick to MFCB instead of Plantation. Why?

In North Dakota there is Now An Oil Boom Due to fracking - a new method of Oil Extraction. As a result there is surplus oil in the US. The US is now turning into an Oil Exporting Nation.

Oil Prices in World Market is dropping for 2 reasons. No 1.) US Oil Surplus. No. 2)On Going Great Recession. The Problem from Lehman Brothers' debacle has not been solved. It has only been postponed by money printing. The day of reckoning will still come.

Crude Oil Prices & Oil Seed Prices are inter related. If Crude Oil Prices crash - Soy bean Oil & Palm Oil Will Be Dragged Down As Well. Palm oil, corn oil are used as biodiesel in certain countries.

So better stay away from plantations.

2014-08-16 23:46

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