Cpo Futures Close Lower Due To Weaker Soybean Futures
29/07/2024 (Bernama), Kuala Lumpur - The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended lower on Monday, due to weaker soybean oil prices on the Chicago Board of Trade (CBOT), said a dealer.
Palm oil trader David Ng said the lower Dalian palm olein prices also influenced the market sentiment.
"Concern over rising output is also putting pressure on prices. We see support at RM3,850 a tonne and resistance at RM4,000 a tonne," he told Bernama.
Fastmarkets senior analyst Sathia Varqa said the CPO lacked any firm direction due to rising output and soaring exports.
"A stronger ringgit further depressed CPO futures," he said.
Meanwhile, the Department of Statistics Malaysia (DoSM) said in a statement that the average monthly price for CPO was about RM3,960 per tonne in June 2024, up from RM3,900 per tonne in the previous month.
DoSM chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the rise in CPO price was due to the anticipated limited supply from Malaysia and Indonesia towards the end of 2024 and the increase in palm oil exports.
At the close, spot month August 2024 contract fell by RM23 to RM4,021 a tonne, September 2024 weakened by RM31 to RM3,944 a tonne, and October 2024 shed RM34 to RM3,908 a tonne.
The November 2024 contract slid by RM38 to RM3,889 a tonne, December 2024 went down by RM44 to RM3,881 a tonne and January 2025 weakened by RM46 to RM3,887 a tonne.
Total volume increased to 73,579 lots from Friday's 52,074 lots, while open interest improved to 223,486 contracts from 218,561 contracts previously.
The physical CPO price for August South was lower by RM10 at RM4,050 per tonne.
-- BERNAMA