CPO Futures End Lower Amid Weaker Soybean Oil Market, Production Concerns
06/08/2024 (Bernama), Kuala Lumpur - The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives continued to end on a low note on Tuesday due to weakness in the Chicago soybean oil market, said palm oil trader David Ng.
Ng also said that concerns over rising production are taking a toll on prices.
"We see support at RM3,650 and resistance at RM3,890," he told Bernama.
Meanwhile, Mumbai-based Sunvin Group's commodity research head, Anilkumar Bagani attributed the market's performance to the sharp selloff in soybean oil on the Chicago Board of Trade, Euronext rapeseed futures overnight, and Chinese vegetable oil futures during Asian trading hours.
"However, the slightly stronger Malaysian ringgit and the upward recovery in energy markets and the Asian equity markets injected some confidence in palm oil.
"The futures were seen recovering from the early selloff, but they remained in negative territory," he added.
At the close, the August 2024 contract fell by RM101 to RM3,829 a tonne, September 2024 slipped by RM73 to RM3,778 a tonne, and October 2024 shed RM82 to RM3,705 a tonne.
The November 2024 contract slid RM80 to RM3,671 a tonne, December 2024 dipped RM76 to RM3,662 a tonne, and January 2025 declined RM68 to RM3,668 a tonne.
Total volume increased to 109,702 lots from Monday's 92,091 lots, while open interest rose to 222,321 contracts from 220,250 contracts previously.
The physical CPO price for August South decreased by RM100 to RM3,900 per tonne.
--BERNAMA