CPO futures end lower due to concern over rising output
31/07/2024 (Bernama), Kuala Lumpur - The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended lower due to concern over rising output in the coming weeks, a dealer said.
Palm oil trader David Ng said the stronger ringgit against the US dollar which have soften the palm oil export demand also influenced market sentiment.
“We see support at RM3,850 a tonne and resistance at RM4,000 a tonne,” he told Bernama.
According to reports, cargo surveyor Societe Generale de Surveillance (SGS) estimated exports of Malaysian palm oil products for July at 1.49 million tonnes from 1.2 million tonnes shipped in June.
Meanwhile, another cargo surveyor Intertek Testing Services said Malaysian palm oil exports for July rose 22.8% to 1.6 million tonnes from 1.30 million tonnes in June.
At the close, spot month August 2024 contract fell by RM12 to RM4,028 a tonne, September 2024 weakened by RM7 to RM3,948 a tonne and October 2024 shed RM7 to RM3,908 a tonne.
The November 2024 contract slid by RM8 to RM3,888 a tonne, December 2024 went down by RM9 to RM3,879 a tonne and January 2025 weakened by RM13 to RM3,880 a tonne.
Total volume decreased to 64,423 lots from Tuesday’s 74,613 lots, while open interest increased to 221,064 contracts from 220,720 contracts previously.
The physical CPO price for August South was lower by RM10 at RM4,060 per tonne.