MARKET DEVELOPMENT
CPO futures end higher on May 23 on weaker output expectation
CPO futures end higher on May 23 on weaker output expectation
24.05.2022 (www.theedgemarkets.com) - KUALA LUMPUR (May 23): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed higher on Monday (May 23), on the back of a weaker output expectation.
Palm oil trader David Ng said firmer prices in related oils such as soybean oil during the Asian hour also put CPO on upside momentum.
“We locate support at RM5,900 per tonne and resistance at RM6,600 per tonne,” he told Bernama.
Another dealer said Indonesia, the world’s biggest palm oil producer has ended the three-week ban on exports of crude palm oil and some derivatives.
“However, higher Indonesian export taxes and levy will keep Malaysia’s export competitiveness,” he said.
At the close, the CPO futures contract for spot month June 2022 increased RM187 to RM6,834 a tonne, July 2022 went up RM203 to RM6,449 a tonne, August 2022 rose RM189 to RM6,261 a tonne and September 2022 jumped RM169 to RM6,142 a tonne.
October 2022 was RM153 firmer at RM6,070 a tonne and RM5,894 a tonne, and November 2022 strengthened by 140 to RM6,034 a tonne.
Total volume fell to 41,866 lots from Friday (May 20)’s close of 114,581 lots, while open interest narrowed to 243,883 contracts from 315,480 contracts on Friday.
The physical CPO price for May South increased RM100 to RM6,850 a tonne. https://www.theedgemarkets.com/article/cpo-futures-end-higher-may-23-2022-weaker-output-expectation