MARKET DEVELOPMENT
CPO futures snap gains to end lower on profit taking
CPO futures snap gains to end lower on profit taking
25.03.2022 (www.theedgemarkets.com) - KUALA LUMPUR (March 24): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended lower on Thursday after profit-taking activities trimmed earlier gains, a dealer said.
Singapore-based Palm Oil Analytics owner and co-founder Sathia Varqa said CPO futures ended lower after three consecutive days of gains due to the expectation of lower export data.
“Malaysia’s palm oil export data for March 1 to 25 is expected to be down at about 1% compared to the previous month,” he told Bernama.
In addition, Mumbai-based Sunvin Group’s commodity research head Anilkumar Bagani said the market is waiting for more clarity over Malaysia’s export and production of palm oil pace to conduct a month-end palm oil stocks assessment.
At the close on Thursday, the CPO futures contract for April 2022 decreased RM190 to RM6,514 a tonne, May 2022 slipped RM234 to RM6,196 a tonne and June 2022 was RM249 lower at RM5,943 a tonne.
July 2022 fell by RM235 to RM5,778 a tonne, August 2022 lost RM204 to RM5,664 a tonne and September 2022 weakened by RM195 to RM5,590 a tonne.
Total volume improved to 67,988 lots from yesterday’s close of 52,051 lots, while open interest widened to 257,988 contracts from 243,949 contracts previously.
The physical CPO price for April South fell by RM100 to RM6,700 a tonne.