Thursday 22 Feb 2024
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KUALA LUMPUR (Dec 7): Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended lower for the fifth consecutive day on Thursday, tracking weakness in rival vegetable oils.

Dalian’s most-active soybean oil contract prices fell 1.72%, palm oil dropped 1.77%, and soy oil and palm olein slipped by 1% amid the Chicago Board of Trade soy oil recouping its overnight losses to increase by 0.77%, dealers said.

Palm oil trader David Ng said the concern over rising stockpile in the country and weaker demand during winter, particularly from China, continue to weigh on CPO prices. 

“As such, we see support at RM3,600 per tonne and resistance at RM3,850 per tonne,” he told Bernama.

Meanwhile, Palm Oil Analytics (Fastmarkets) managing director Dr Sathia Varqa said Bursa Malaysia CPO futures had erased nearly 200 points since last Friday.

“While palm fundamentals remained steady, macro data and news from China have been sparking massive sell-off on the Chinese equities and derivatives market, including soybean oil and palm olein, on the Dalian Exchange spilling over to weigh heavily on CPO futures this week.

 “Chinese government debt rating downgrade had also been wreaking havoc on the financial markets this week,” he added.

At the close, the December 2023, April 2024 and May 2024 contracts shed RM24 each to RM3,657 per tonne (Dec 2023), RM3,731 per tonne (April 2024) and RM3,714 per tonne (May 2024).

January 2024 fell by RM21 to RM3,650 per tonne, February 2024 declined by RM17 to RM3,702 per tonne and March 2024 slipped by RM20 to RM3,731 per tonne.

Total volume decreased to 71,522 lots from 100,049 lots on Wednesday, while open interest narrowed to 216,188 contracts from 216,557 contracts previously.

The physical CPO price for December South fell by RM30 to RM3,630 per tonne.

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