MARKET DEVELOPMENT
CPO futures end lower
CPO futures end lower
06.01.2022 (www.theedgemarkets.com) - KUALA LUMPUR (Jan 6): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended lower on Thursday on regional weakness.
However, the expectation of weaker production will support prices, said palm oil trader David Ng.
“We locate support at RM4,750 a tonne and resistance at RM5,100 a tonne,” he told Bernama.
Another dealer said the downtrend was due more to a technical correction since the market was overdone, and noted that a positive trend in crude oil prices also lent some support to the commodity.
At press time, the benchmark Brent crude oil price rose 1.01% to US$81.62 per barrel.
The CPO futures contract for January 2022 declined RM50 to RM5,387 a tonne, February 2022 fell RM53 to RM5,288 a tonne, March 2022 was RM51 lower at RM4,985 a tonne, April 2022 went down RM55 to RM4,781 a tonne, May 2022 lost RM60 to RM4,617 a tonne and June 2022 dropped RM60 to RM4,490 a tonne.
Total volume decreased to 53,408 lots from 56,651 lots on Wednesday while open interest narrowed to 261,596 contracts from 264,416 contracts previously.
The physical CPO price for January South was RM30 easier at RM5,420 a tonne from RM5,450 a tonne on Wednesday.