CPO Futures Close Lower, Tracking Weakness in Soybean Oil
25/07/2024 (Bernama) – The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended lower for the third consecutive day on Thursday, tracking weakness in the Chicago soybean oil market and weaker Dalian palm olein prices.
However, palm oil trader David Ng said downside pressure was being capped by the expectation of stronger demand, which may absorb the increase in output trend.
“We see support at RM3,850 and resistance at RM4,000,” he told Bernama.
At the close, spot month August 2024 contract fell by RM16 to RM4,008 a tonne, September 2024 weakened by RM1 to RM3,950 a tonne, and October 2024 shed RM7 to RM3,918 a tonne.
November 2024, December 2024 and January 2025 contract decreased by RM10 each to RM3,902, RM3,904 and RM3,916 a tonne, respectively.
Total volume shrank to 66,335 lots from Wednesday’s 71,404 lots, while open interest expanded to 222,405 contracts from 221,901 contract previously.
The physical CPO price for July South was unchanged at RM4,040 per tonne.