MARKET DEVELOPMENT
CPO futures end lower on profit-taking
CPO futures end lower on profit-taking
26.02.2022 (www.theedgemarkets.com) - KUALA LUMPUR (Feb 25): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed significantly lower on Friday on profit-taking, said a dealer.
Palm oil trader David Ng said the palm oil market reversed its massive gains on Thursday following the weakness in the soybean oil and energy markets.
“We locate support at RM5,700 and resistance at RM6,300,” he added.
Brent crude eased slightly by 0.09% to US$98.99 per barrel at the time of writing.
At the close on Friday, the CPO futures contract for spot month March 2022 slipped RM361 to RM6,732 a tonne, April 2022 decreased RM465 to RM6,321 a tonne, May 2022 went down RM474 to RM5,984 a tonne, and June 2022 declined RM485 to RM5,690 a tonne.
July 2022 was RM462 lower at RM5,476 a tonne and August 2022 fell RM440 to RM5,310 a tonne.
Total volume, however, increased to 120,078 lots from Thursday’s close of 104,018 lots while open interest climbed to 317,771 contracts from 300,254 contracts yesterday.
The physical CPO price for March shed RM250 to RM6,800 a tonne.