Sunday 19 May 2024
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KUALA LUMPUR (April 8): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed lower for the third straight day on Monday in line with the weaker rival soybean oil as well as palm olein futures on the Dalian Commodity Exchange, which weigh on market sentiment.

“We see support at RM4,200 a tonne and resistance at RM4,400 a tonne,” said palm oil trader David Ng.

Meanwhile, Mumbai-based Sunvin Group commodity research head Anilkumar Bagani told Bernama the focus has shifted to the Malaysian Palm Oil Board's (MPOB) March data for exports, production and stock levels, which will be delayed than usual as it will be released on April 15 due to the upcoming Hari Raya holidays.

Citing the MPOB previews, he said the Malaysian palm oil end-March inventories are seen in the range of 1.69 million tonnes to 1.79 million tonnes.

Malaysia’s total palm oil stocks fell 5% to 1.92 million tonnes at end-February 2024 from 2.02 million tonnes in January 2024, the MPOB said last month.

At the close, the spot month April 2024 contract fell RM40 to RM4,514 a tonne, May 2024 erased RM41 to RM4,382 a tonne, June 2024 decreased by RM48 to RM4,295 a tonne, and July 2024 went down RM53 to RM4,220 a tonne.

August 2024 declined RM56 to RM4,142 a tonne and September 2024 dipped RM57 to RM4,077 a tonne.

Total volume fell to 67,914 lots from Friday’s 71,980 lots, while open interest slipped to 265,695 contracts from 268,274 contracts previously.

The physical CPO price for April South was RM40 lower at RM4,530 a tonne.

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