CPO futures tracks weakness in soybean oil
17.05.2021 (www.thestar.com.my) - KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended lower on Monday, tracking the weaker soybean oil performance on the US Chicago Board of Trade (CBOT) during the Asian hours trading session.
However, palm oil trader David Ng said losses were capped by a stronger export estimation as well as anticipation of lower output in the coming weeks.
"We locate support at RM4,400 per tonne and resistance at RM4,580 per tonne, ” he told Bernama.
Meanwhile, Singapore-based Palm Oil Analytics owner and co-founder Dr Sathia Varqa said concerns over export demand to India also weighed on market sentiment as more states imposed restrictions and curbing export demand.
At the close, CPO futures contract for June 2021 was down RM62 to RM4,687 per tonne, July 2021 weakened RM53 to RM4,453 per tonne, August 2021 trimmed RM43 to RM4,242 per tonne, and September 2021 eased RM53 to RM4,076 per tonne.
Total volume increase to 69,538 lots from 31,114 lots on Wednesday last week, while open interest rose to 263,837 contracts from 228,824 contracts previously.
The physical CPO price for May South fell RM70 at RM4,750 per tonne.
The local market resumed trading today after the Hari Raya Aidilfitri celebrations on Thursday and Friday last week. - Bernama