16 Jul 2013 07:54

KUALA LUMPUR, July 15 (Bernama) -- Crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives continued the downtrend from last week to close sharply lower today, dealers said.

They also said the decline was the lowest in two months.

Cargo surveyor, Intertek Testing Services estimated that Malaysia's palm oil exports fell 23 per cent from July 1-15 to 547,857 tonnes, against the 709,860 tonnes in the same period a month ago.

Phillip Futures Sdn Bhd derivative product specialist, David Ng attributed the sluggish performance to weakening demand for CPO, especially from European buyers.

"European demand continues to be weak as they seek to limit biodiesel usage in which palm oil is used as a component product.

"The market remains weak as supply outweighs demand in the coming weeks and palm oil entering a high production period," he told Bernama.

Spot month July 2013 remained unchanged at RM2,330 per tonne, August 2013 decreased RM24 to RM2,285 per tonne, September 2013 lost RM28 to RM2,273 per tonne and October 2013 fell RM30 to RM2,263 per tonne. Turnover slipped to 47,577 lots from 48,578 lots on Friday, while open interest declined to 223,604 contracts from 226,995 contracts last week.

On the physical market, July South trimmed RM40 to RM2,310 a tonne.