The Edge Markets (17/08/2021) - KUALA LUMPUR (Aug 17): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives retreated to end lower today, as traders book profit amid production uncertainty in the coming weeks.

Palm oil trader David Ng said traders were concerned with higher stockpiles during the peak season in September and October.

“Production might be on the rise due to the upcoming rainy season while exports are expected to slow down due to slower demand which will drag down prices for now.

“We locate support level at RM4,300 per tonne and resistance at RM4,520 per tonne,” he told Bernama.

On Monday, cargo surveyor Societe Generale de Surveillance said exports of Malaysian palm oil products for Aug 1-15 fell 15.3% to 577,972 tonnes, from 682,426 tonnes shipped during July 1-15 period.

At the close, spot month September 2021 declined RM28 to RM4,635 per tonne, October 2021 fell RM47 to RM4,517 per tonne, November 2021 lost RM39 to RM4,408 per tonne, December 2021 decreased RM29 to RM4,330 per tonne, January 2022 dipped RM19 to RM4,267 per tonne, and February 2022 eased RM11 to RM4,210 per tonne.

Total volume improved to 61,377 lots from yesterday’s 60,983 lots, while open interest slipped to 253,648 contracts from 260,484 contracts previously.

The physical CPO price for August South went down RM60 to RM4,670 per tonne.

Read more at https://www.theedgemarkets.com/article/cpo-futures-ease-anticipation-higher-production-stockpiles