Repeat CPO futures snap five-day gains streak to end lower
20/06/2023 (The Sun Daily), Kuala Lumpur - The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives snapped five consecutive days of gains to end lower today amid lacklustre trading.
Fastmarkets Palm Oil Analytics managing editor Dr Sathia Varqa said the lack of guidance from the soybean oil trade on the Chicago Board of Trade (CBOT), following the United States holiday closure and an absence of fresh fundamentals, kept the market mostly sluggish throughout the day.
“Besides, the markets also concern over immediate June production and weak exports are at the forefront of traders’ minds.
“Weather and supply are the twin factors in CPO pricing at the moment with export prospects seen improving in July,” he told Bernama.
At the close, July 2023 fell RM29 to RM3,737 per tonne, August 2023 declined RM34 to RM3,728 per tonne, September 2023 dropped RM30 to RM3,727 per tonne, October 2023 and November 2023 slipped RM28 each to RM3,726 and RM3,733 respectively and December 2023 shed RM20 to RM3,747.
Total volume was reduced to 39,703 lots from 67,233 lots on Monday while open interest dropped to 231,519 contracts from 264,772 previously.
The physical CPO price for July South was unchanged at RM3,800 per tonne. -Bernama