PETALING JAYA: Crude palm oil (CPO) futures contracted on Bursa Malaysia Derivatives to below the RM2,400-per-tonne mark yesterday, the lowest since October last year, as market sentiment was spooked by reports of domestic palm oil inventories likely breaching two million tonnes by year-end.
Many regional commodity traders have indicated that domestic palm oil stocks would climb back to between two million and 2.5 million tonnes by end-2014, similar to the historical high of 2.6 million tonnes in 2012.
