Asian crude palm (CPO) futures closed lower on Tuesday on expectations that supply will increase following a full resumption of milling activities after a week-long holiday, traders said.
Malaysia CPO September contract prices were settled at Malaysian ringgit (M$) 3,144/tonne ($1,059/tonne) on Tuesday, down by M$41/tonne from Monday, with a total of 18,875 tonnes traded.
"With activities resuming in full force at the local [Malaysian] plantations, supply of CPO is expected to increase, dragging prices down," said a Malaysian palm oil trader.
In Indonesia, October CPO contract also settled lower at Rupiah (Rp) 8.745m/tonne ($1,025/tonne), down Rp195,000/tonne from Monday.
"Most buyers are buying forward October-November contracts and less interest on the September [contracts] as prices are much lower towards the end of the year," an Indonesian producer said.
