MARKET DEVELOPMENT
CPO futures end lower
CPO futures end lower
17.03.2022 (www.theedgemarkets.com) - KUALA LUMPUR (March 17): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives retreated from Wednesday’s gains to end lower on Thursday, driven by renewed concern on the global commodities market.
Palm oil trader David Ng told Bernama the CPO futures prices swung between positive and negative territory but ended the day lower as Indonesia decided to remove domestic requirements but increase overall CPO levy as a way to subsidise local cooking oil prices.
“Traders reacted to such an announcement during the day. We locate support at RM5,800 a tonne and resistance at RM6,300 a tonne,” he said.
Meanwhile, another dealer said crude oil futures prices climbed in early trading Thursday, recovering some of the prior day’s losses, after the International Energy Agency (IEA) said a decline in oil demand due to higher prices would not offset a shut-in of Russian oil supplies.
At the close on Thursday, the CPO futures contract for April 2022 dropped RM339 to RM6,560 a tonne, while May 2022 slipped RM164 to RM6,173 a tonne and June 2022 decreased RM127 to RM5,940 a tonne.
July 2022 fell RM87 to RM5,828 a tonne, August 2022 was RM54 lower at RM5,746 a tonne and September 2022 shed RM27 to RM5,690 a tonne.
Total volume increased to 82,286 lots from Wednesday’s close of 57,876 lots, while open interest widened to 273,310 contracts from 246,846 contracts previously.
The physical CPO price for March South declined by RM250 to RM6,850 a tonne.