MARKET DEVELOPMENT
CPO futures snap 3-day rally on profit-taking
CPO futures snap 3-day rally on profit-taking
13.04.2022 (www.theedgemarkets.com) - KUALA LUMPUR (April 13): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives snapped a three-day winning streak on profit-taking in line with the bearish soybean oil performance on the Dalian Commodity Exchange.
Palm Oil Analytics owner and co-founder Dr Sathia Varqa said the palm market also defied the higher soybean oil closing on the Chicago Board of Trade.
"External support remains strong but fundamentals of improving palm supply is expected to sustain downward pressure.
"We will also know Malaysia's April 1-15 key data such as exports indication tomorrow," he told Bernama.
CPO production increased 24.07% to 1.41 million tonnes in March 2022 compared with 1.13 million tonnes in the previous month, according to the Malaysian Palm Oil Board (MPOB).
At the close, the CPO futures contract for April 2022 eased RM110 to RM6,780 a tonne, May 2022 went down RM61 to RM6,485 a tonne, June 2022 decreased RM49 to RM6,128 a tonne, while July 2022 was RM52 lower at RM5,942 a tonne.
August 2022 slipped RM54 to RM5,814 a tonne and September 2022 dipped RM61 to RM5,724 a tonne.
Total volume, however, increased to 62,625 lots from Tuesday’s close of 49,506 lots while open interest rose to 256,032 contracts from 242,532 contracts previously.
The physical CPO price for April South was RM200 lower at RM6,700 a tonne. https://www.theedgemarkets.com/article/cpo-futures-snap-3day-rally-profittaking