15/05/2012 (The Star) - Crude palm oil (CPO) futures hit a three month low to RM3,173 on Bursa Malaysia Derivatives as concerns on the global economic slowdown and weak palm oil demand continue to worry investors.

The benchmark futures CPO July contract tumbled RM102 to close at RM3,173 per tonne on Monday from RM3,275 per tonne last Friday.

This is its three month low since Feb 14, 2012.

Dealers expect CPO futures prices on Bursa Malaysia Derivatives to trade between RM3,300 and RM3,400 per tonne this week.

Mid-capitalised palm oil stocks such as Sarawak Oil Palms Bhd, Tradewinds (M) Bhd, Far East Holdings Bhd, Kluang Rubber Co (M) Bhd and United Plantations Bhd hogged the losers' list on Bursa Malaysia, although all were traded on thin volume.

Sarawak Oil Palms was down 25 sen to RM6.21 while Tradewinds was down 36 sen to RM5.53. Far East and Kluang Rubber shed 17 sen and 20 sen respectively to end the day at RM7.48 and RM2.60.

Meanwhile, United Plantations closed the day down 14 sen to RM25.

The futures have been trading sharply lower in the last two weeks.

Last week, CPO futures traded lower with prices moving between RM3,275 per tonne and RM3,360 per tonne.

May 2012 fell RM80 to RM3,285 per tonne, June 2012 and July 2012 dropped RM83 each to RM3,283 and RM3,275 respectively, while August 2012 was down by RM73 to RM3,265 per tonne.

Last Thursday, the Malaysian Palm Oil Board released its monthly reports on Malaysian palm oil supply and demand for April 2012.

Palm oil stocks were lower at 1.85 million tonnes, a drop of 5.41% from the previous month.

Exports in April improved 1.33 million tonnes or 0.14% while the palm oil production rose 1.27 million tonnes or 5.07%.