MARKET DEVELOPMENT
CPO futures end lower on higher production data
CPO futures end lower on higher production data
17.02.2022 (www.theedgemarkets.com) - KUALA LUMPUR (Feb 16): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed lower on Wednesday on improving production for the first half of February.
Singapore-based Palm Oil Analytics’ owner and co-founder Sathia Varqa said the Southern Peninsula Palm Oil Millers' Association (SPPOMA) data revealed that production for Feb 1-15 was higher by 0.46% compared with the same period last month, which was a setback for the local market.
“The CPO futures gave up more gains on Wednesday as the benchmark month switched to May. The sentiment of CPO is in an overbought situation which has intensified the liquidation,” he told Bernama.
At the close on Wednesday, the CPO futures contract for March 2022 eased RM39 to RM5,830 a tonne, April 2022 shrank RM53 to RM5,604 a tonne, May 2022 dipped RM41 to RM5,433 a tonne, June 2022 shed RM25 to RM5,274 a tonne, July 2022 reduced RM179 to RM5,120 a tonne, and August lost RM87 to RM4,977 a tonne.
Total volume decreased to 68,376 lots from Tuesday’s close of 71,641 lots, while open interest narrowed to 274,182 contracts from 274,922 contracts previously.
The physical CPO price for February slipped RM10 to RM5,990 a tonne.