30/03/2022 (The Edge Markets), Kuala Lumpur - The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended lower on Wednesday following bearish undertone in Chicago Board of Trade’s soybean oil prices, a dealer said.

Mumbai-based Sunvin Group’s commodity research head Anilkumar Bagani said the demand has been stagnant in palm oil due to the very high prices and India is the only destination currently that is showing some kind of buying.

“Malaysia’s palm oil export performance in March 1-25 period was lower while the production seen improving,” he told Bernama.

Independent inspection company AmSpec Agri Malaysia reported that Malaysia’s palm oil export from March 1 to March 25 fell 4.875 to 1 million tonnes from 1.06 million tonnes shipped during the same period last month. 

Meanwhile, palm oil trader David Ng said CPO ended lower, tracking weakness in the overnight soybean oil market amid talks of possible moves to scale down the Russian and Ukraine conflict.

“We locate support at RM5,800 per tonne and resistance at RM6,200 per tonne,” he said.

At the close on Wednesday, the CPO futures contract for April 2022 dipped RM93 to RM6,538 a tonne, May 2022 fell RM66 to RM6,249 a tonne, June 2022 slid RM90 to RM5,930 a tonne, July 2022 decreased RM95 to RM5,739 a tonne and August 2022 and September 2022 both declined RM98 to RM5,633 a tonne and RM5,564 a tonne respectively.

Total volume shrank to 42,409 lots from Tuesday’s close of 47,117 lots while open interest narrowed to 226,905 contracts from 231,346 contracts previously.

The physical CPO price for April South was RM50 lower at RM6,700 a tonne.

https://www.theedgemarkets.com/article/cpo-futures-end-lower-weighed-weaker-soybean-oil-prices