CPO Futures Slide As Lower Oil Prices Weigh On Market Sentiment
28/10/2024 (Bernama), Kuala Lumpur - Crude palm oil (CPO) futures on Bursa Malaysia Derivatives closed lower today, extending its losses from last Friday, as lower crude oil and soybean oil prices continue to weigh on sentiment, said a palm oil trader.
We see prices supported at RM4,480 a tonne and resistance at RM4,620 a tonne, David Ng told Bernama.
However, Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said the weaker ringgit, a robust Malaysian palm oil export in October, the tightness in stocks, and weaker palm oil production pace have supported palm oil and limited the decline in ringgit- denominated CPO futures.
"The early sell-off has been erased and prices are seen trading sideways.
"Oil prices tumbled to nearly US$4 a barrel on Monday after Israel's retaliatory strike on Iran over the weekend bypassed Tehran's oil and nuclear infrastructure. It did not disrupt energy supplies, easing geopolitical tensions in the Middle East," he said.
At the time of writing, benchmark Brent crude oil stood at US$71.68 per barrel, falling by 5.75 per cent.
At the close, the spot month November 2024 contract was lower by RM1 to RM4,631 per tonne, December 2024 eased by RM8 to RM4,576 per tonne, and January 2025 fell by RM7 to RM4,529 per tonne.
February 2025 decreased by RM11 to RM4,470 per tonne, March 2025 slid by RM17 to RM4,406 per tonne, and April 2025 decreased by RM22 to RM4,335 per tonne.
Trading volume decreased to 60,668 lots from 97,467 lots last Friday, while open interest fell to 248,979 contracts from 252,233 previously.
The physical CPO price for November South was unchanged at RM4,680 per tonne.
-- BERNAMA