17.06.2021 (www.theedgemarkets.com) - KUALA LUMPUR (June 17): Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives continued to end lower today amid the overnight weakness in the soybean oil market on the Chicago Board of Trade (CBOT).

According to palm oil trader David Ng, the futures prices may also head lower due to regional weakness in both the equities and commodities market.

“We locate the next support level at RM3,300 and resistance at RM3,480 per tonne,” he told Bernama.

Meanwhile, CGS-CIMB in a research note said palm oil futures on Bursa Malaysia were back to tracking the Dalian Commodity Exchange and CBOT's soybean after the decoupling yesterday.

It said the bearish sentiment would persist in the palm oil market until there’s more clarity on production.

“Industry players and analysts are revisiting their forecasts for output in Malaysia, the world’s second-biggest grower, as a resurgence in Covid-19 infections could exacerbate a labour shortage,” it added.

At the close, the CPO futures contract for July 2021 decreased RM16 to RM3,566 per tonne, August 2021 fell RM29 to RM3,464 per tonne, September 2021 shrank RM34 to RM3,404 per tonne, and October 2021 eased RM46 to RM3,387 per tonne.

Total volume advanced to 97,106 lots from 85,225 lots on Wednesday, while open interest widened to 278,271 contracts from 262,306 contracts previously.

The physical CPO price for July South trimmed RM100 to RM3,620 per tonne.

https://www.theedgemarkets.com/article/cpo-futures-close-lower-tracking-weakness-soybean-oil