09/11/2022 (The Edge Markets), Kuala Lumpur - Crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives fell for the second consecutive day ahead of the release of Malaysian Palm Oil Board (MPOB) and the United States Department of Agriculture (USDA) monthly supply-demand releases.

Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said MPOB would release its October data on Thursday while the USDA would announce its report later on Wednesday.

He said prices are also under pressure on weaker soybean and crude oil markets, the Chinese zero Covid-19 policy and US mid-term election result.

“The buying interest from key destinations India, European Union and China has slowed down.

“However, palm oil prices are still trading at a wider discount over competing oils and may not independently fall much unless a major downside correction is seen in soyoil and sunflower oil markets,” he said.

At the close, contracts for November 2022 decreased by RM109 to RM4,145 a tonne, December 2022 dropped RM129 to RM4,151 a tonne and January 2023 declined RM163 to RM4,198 a tonne.

February 2023 contracts eased RM176 to RM4,219 a tonne while March 2023 and April 2023 slipped RM183 each to RM4,212 a tonne and RM4,191 a tonne respectively.

Total volume, however, grew to 78,733 lots from 63,820 lots on Tuesday while open interest widened to 275,025 contracts from 259,219 contracts previously.

The physical CPO price for November South was reduced by RM50 to RM4,180 a tonne.

https://www.theedgemarkets.com/article/cpo-futures-falls-ahead-mpob-usda-demand-supply-data