CPO Futures End Mixed Amid Higher Vegetable Oil Prices
24/12/2024 (Bernama), Kuala Lumpur - The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives reversed earlier losses to close mixed, following a volatile trading session, said Fastmarkets Palm Oil Analytics senior analyst Sathia Varga.
He said that higher vegetable oil prices on the Dalian Commodity Exchange and Zhengzhou Commodity Exchange, as well as weak production data helped to sustain palm oil futures prices.
However, he said some traders were squaring off their positions and taking profits which put some pressure on the market.
“Production estimate by the United Overseas Bank showed a seven to 11 percent decline for the first 20 days of December compared to the market.
“This decline has been worsened by adverse weather conditions, including rain and floods, which have disrupted harvesting activities. As a result, December is set to be the fourth consecutive month of lower production.” He told Bernama.
At the close, the January 2025 contract decreased by RM6 to RM4,895 per tonne, February 2025 rose by RM18 to RM4,701 and March 2025 surged by RM16 to RM4,558 per tonne.
Meanwhile, the April 2025 contract climbed RM9 to RM 4,421 per tonne, while May 2025 slid RM3 to RM4,312 per tonne, and June 2025 fell RM2 to RM4,247 per tonne.
Trading volume eased to 47,182 lots from 48,992 lots yesterday, while open interest declined to 240,879 contracts from 244,206 contracts previously.
The physical CPO price for January South increased by RM40 to RM5,000 per tonne.