CPO FUTURES ENDS FOUR-DAY WINNING STREAK TO CLOSE LOWER
05/11/2024 (Bernama), Kuala Lumpur - The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended a four-day winning streak closing lower, taking the cue from the weakness in Chicago Board of Trade (CBOT) soybean oil futures, a dealer said.
Palm oil trader David Ng said the market sentiment was also affected by profit-taking activities ahead of the United States (US) presidential election results.
“We see support at RM4,750 per tonne and resistance at RM4,900 per tonne,” he told Bernama.
Meanwhile, Fastmarket Palm Oil Analytics senior analyst Sathia Varqa said a stronger ringgit against the US dollar, coupled with large losses in related vegetable oil futures on the Dalian Commodity Exchange (DCE) and Zhengzhou Commodity Exchange (ZCE), weighed on market sentiment.
"Palm futures have been on a strong rally since October, with active month rising 22 per cent propelled by solid fundamentals of higher exports, lower production, and easing stocks, he said.
Reports indicated that soybean futures closed lower on Tuesday in daytime trading at the DCE, with the most active soybean contract for January 2025 dipping 14 yuan (about US$1.97) to close at 3,980 yuan per tonne.
At the close, the spot month November 2024 contract dropped RM70 to RM4,914 per tonne, December 2024 fell RM85 to RM4,855 per tonne, and January 2025 declined RM85 to RM4,806 per tonne.
February 2025 decreased RM88 to RM4,745 per tonne, March 2025 slipped RM90 to RM4,663 per tonne, and April 2025 slid RM88 to RM4,570 per tonne.
Trading volume rose to 84,057 lots from 70,549 on Monday, while open interest declined to 240,020 contracts from 242,438 previously.
The physical CPO price for November South fell RM40 to RM4,980 per tonne.