A lack of fresh fundamentals in the crude palm oil (CPO) market havepushed prices of palm oil down during the past week but traders insistthat the decline was merely a major correction.

They said commodity prices this week dipped further as sellers liquidatedtheir positions ahead of the long weekend and worries over uncertaintiesin the production and demand of the vegetable oils.

The Malaysia Derivatives Exchange (Mdex) will close tomorrow for theNational Day celebration.

Trading resumes on Monday.

"CPO prices were pushed below the RM1,060 a tonne support level in today'strade due to lack of fresh leads and strong fundamentals.

How-ever, the price rebounded towards the end of the day," a trader toldBusiness Times in Kuala Lumpur yesterday.

At Mdex yesterday, the benchmark November futures contract rebounded RM35to settle at RM1,071 a tonne after trading at RM1,036 at midday.

Futures contracts for both September and October each gained RM3 to closeat RM1,068 a tonne and RM1,070 respectively.

Total turnover narrowed to 2,493 lots from 3,317 lots on Tuesday, whileopen interest was down at 11,699 contracts versus 11,895 contracts,previously.

On the physical market yesterday, August South closed at RM1,070 a tonnewith volume falling 824 lots to 2,493 and open positions 196 contracts to11,699.

November and December deliveries each closed RM2 lower to end at RM1,071 atonne and RM1,075 a tonne, respectively.

30 August 2001Business Times