MARKET DEVELOPMENT
CPO futures end lower, tracking Chicago Board of Trade
CPO futures end lower, tracking Chicago Board of Trade
14.01.2022 (www.theedgemarkets.com) - KUALA LUMPUR (Jan 14): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended lower on Friday, tracking the weak performance of the Chicago Board of Trade (CBOT) soybean oil market, said palm oil trader David Ng.
He said the expectation of weaker demand in the coming days is also owing to the recent rally in prices.
“We expect prices to trade on a weak bias as the current high prices curb additional demand.
“Hence, we locate support at RM4,700 a tonne and resistance at RM5,200 a tonne,” he told Bernama.
The CPO futures contract for January 2022 shrank RM30 to RM5,300 a tonne and February 2022 was lower by RM50 to RM5,276 a tonne.
Meanwhile, March 2022 lost RM34 to RM5,123 a tonne, April 2022 declined RM26 to RM4,956 a tonne, May 2022 eased RM27 to RM4,788 a tonne, and June 2022 narrowed by RM24 to RM4,646 a tonne.
Total volume climbed to 68,355 lots from 65,254 lots yesterday, while open interest added 268,508 contracts from 267,205 contracts previously.
The physical CPO price for January South dipped RM50 to RM5,350 a tonne from RM5,400 a tonne on Thursday.