08/02/2022 (The Edge Markets), Kuala Lumpur - The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives (BMD) ended lower on Thursday, continuing its downtrend and tracking the weakness in the soybean oil market, said a dealer.

He said some traders in the physical market have pulled out from the market on persistent global uncertainties, including the fresh lockdowns in some cities in China to curb the spread of Covid-19.

“In terms of inventories, there are plenty in Malaysia and Indonesia.

"Weather conditions are still relatively good for oil palm plantations for now and business is still profitable, but we think some speculators may be taking a break amid the current environment, which influences the futures market," he said.

At the close, the CPO futures contract for spot months September 2022 and October 2022 fell by RM162 each to RM3,438 and RM3,509 per tonne, respectively, November 2022 eased by RM149 to RM3,541 and December 2022 slipped RM134 to RM3,582 per tonne.

January 2023 contract declined RM126 to RM3,627 per tonne and February 2023 went down RM138 to RM3,676.

Total volume decreased to 91,338 lots from 98,837 lots on Wednesday, while open interest fell to 287,592 contracts from 293,636 contracts previously.

The physical CPO price for September South was down RM100 to RM3,650 per tonne.

https://www.theedgemarkets.com/article/cpo-futures-close-lower-tracking-weakness-soybean-oil-0