KUALA LUMPUR (Dec 29): Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended the last day of 2023 mostly lower, taking the cue from the weakness of soybean oil on the Chicago Board of Trade (CBOT) and the stronger ringgit against the US dollar, said a dealer.
Palm oil trader David Ng said, however, spot month January 2024 reversed earlier losses to end higher on concerns over the flood situation on the East Coast, which may affect output.
“Hence, we see support at RM3,600 a tonne and resistance at RM3,850 a tonne,” he told Bernama.
Palm Oil Analytics (Fastmarkets) managing director Sathia Varqa said the last trading day in 2023 ended on a positive note after showing great stamina to rise from over 60-point plunge to recover and close by five points up on the most active contract.
“However, active profit-taking and squaring of positions ahead of the New Year long weekend kept the market under pressure throughout the day but the sell-off deepened in the second half as the ringgit continued to climb higher to a dollar, making the tropical oil more expensive to the international buyers,” he added.
At the close, the spot month January 2024 contract added RM5 to RM3,662 per tonne.
However, February 2024 and April 2024 slipped RM22 each to RM3,695 and RM3,718 per tonne, respectively.
March 2024 eased RM18 to RM3,721 per tonne, May 2024 shed RM12 to RM3,708 per tonne, and June 2024 declined RM13 to RM3,677 per tonne.
The total volume rose to 51,554 lots from 42,868 lots on Thursday, and open interest widened to 214,704 contracts from 213,487 previously.
The physical CPO price for January South slid RM20 to RM3,700 per tonne.