MARKET DEVELOPMENT
CPO futures end higher on June 14 on bargain buying
CPO futures end higher on June 14 on bargain buying
15.06.2022 (www.theedgemarkets.com) - KUALA LUMPUR (June 14): Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended higher on Tuesday (June 14) on bargain buying activities, after the recent sharp sell-down.
However, palm oil trader David Ng said sentiment is still weighed by the prospect of higher inventory given the slower demand in the country, as Indonesia continues to export CPO after the recent ban.
“We locate support at RM5,700 a tonne and resistance at RM6,200 a tonne,” he told Bernama.
Meanwhile, another dealer said the weaker ringgit makes the commodity more attractive to foreign buyers.
At 6pm local time, the local currency depreciated against the greenback to 4.4190/4220 from Monday’s close of 4.4170/4185.
At the close, the CPO futures contract for spot month June 2022 and July 2022 rose RM24 each to RM6,154 a tonne and RM6,015 a tonne, respectively.
Meanwhile, August 2022 increased RM55 to RM5,848 a tonne, September 2022 added RM82 to RM5,735 a tonne, October 2022 surged RM90 to RM5,657 a tonne, and November 2022 soared RM88 to RM5,625 a tonne.
Total volume eased to 68,362 lots from Monday’s close of 74,843 lots, while open interest was down to 290,542 contracts from 292,297 contracts previously.
The physical CPO price for June South added RM50 to RM6,250 a tonne.