16/05/2022 (The Edge Markets) - The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended lower on Wednesday on continued concerns over weaker demand following the lifting of Indonesia’s CPO export ban.

Palm oil trader David Ng said the world’s biggest producer of palm oil continued to export CPO aggressively, which was seen as putting pressure on Malaysia’s exports.

“Indonesia continues to export palm oil aggressively, coupled with risk-off sentiment ahead of the outcome of the US Federal Reserve’s two-day meeting which ends Wednesday,” he told Bernama.

Besides that, Ng said the lower CPO futures were also tracking the weakness in the Chicago Board of Trade’s soybean oil futures market as well as the equities market.

“Most of the regional markets ended lower, which spilled over to the palm market,” he added.

At the close, CPO futures contract for spot month June 2022 dipped RM154 to RM6,000 a tonne, July 2022 decreased RM237 to RM5,778 a tonne and August 2022 eased RM191 to RM5,657 a tonne.

Meanwhile, September 2022 was lower by RM159 to RM5,576 a tonne, October 2022 shed RM138 to RM5,519 a tonne and November 2022 fell RM121 to RM5,504 a tonne.

Total volume rose to 88,891 lots from Tuesday’s close of 68,362 lots while open interest soared to 314,481 contracts from 290,542 contracts yesterday.

The physical CPO price for June South was down RM50 to RM6,200 a tonne.

https://www.theedgemarkets.com/article/cpo-futures-end-lower-concerns-over-weaker-demand