KUALA LUMPUR, The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended lower on Tuesday due to concerns over rising output and stock levels in the coming weeks, said palm oil trader David Ng.
Additionally, the sluggishness in the soybean oil market contributed to the downward pressure on prices, he said.
‘We see the price support level at RM3,900 per tonne and resistance at RM4,050,’ he told Bernama.
Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said CPO futures were seen trading sharply lower today, following a selloff in Chinese vegetable oil futures during Asian trading hours, as well as the Chicago Board of Trade’s soyoil, soybean oil, ICE canola futures, and Euronext rapeseed futures overnight on Monday.
‘Additional pressure came from reduced energy prices, particularly in ultra-low sulfur diesel, which has narrowed palm oil biodiesel margins,’ he added.
At the close, the spot month July 2024 contract and August 2024 eased RM73 each to RM4,015 and RM3,980 a
tonne, respectively.
September 2024 dropped RM83 to RM3,959 a tonne, October 2024 slid RM77 to RM3,949, November 2024 shed RM73 to RM3,944, and December 2024 dipped RM70 to RM3,949 a tonne.
Total volume increased to 81,428 lots from Friday’s 51,843 lots while open interest expanded to 235,174 contracts from 233,507 contracts previously.
The physical CPO price for July South was RM50 lower at RM4,080 per tonne.
Source: BERNAMA News Agency