CPO futures end lower as Indonesia mulls waiving domestic policy requirements
23/07/2022 (The Edge Markets) - Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed lower amid news that the Indonesian government is mulling to waive its domestic policy requirements for palm oil exports, said palm oil trader David Ng.
He told Bernama that the news would result in the increase of the overall supply of palm oil in the market.
“We expect the price to be supported between RM3,600 and RM4,100 per tonne for next week,” said Ng.
Indonesia’s move on the policy was due to high inventories of the vegetable oil, which have been holding back a recovery in oil palm fruit prices.
At the close, CPO futures contract for spot month August 2022 dropped RM206 to RM3,707 a tonne, September 2022 decreased RM212 to RM3,701 a tonne, October 2022 fell RM215 to RM3,720 a tonne, November 2022 dipped RM219 to RM3,751 a tonne, December 2022 slid RM224 to RM3,800 a tonne, and January 2023 slipped RM229 to RM3,850 a tonne.
Total volume was higher at 63,817 lots from 62,668 lots on Thursday, while open interest expanded to 264,060 contracts from 261,260 contracts previously.
The physical CPO price for August South remained unchanged at RM3,800 a tonne.