KUALA LUMPUR, The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended lower for the third consecutive day as the expectation of weaker exports continued to weigh on prices, palm oil trader David Ng said.

He said that prospects of lower demand for palm oil may lead to higher stockpiles in the country.

“We locate the support level at RM4,100 per tonne and resistance at RM4,350 per tonne,” he told Bernama.

Singapore-based Palm Oil Analytics owner and co-founder Sathia Varqa said the CPO futures trade was volatile.

“Trading was volatile while traded volume was higher than usual ahead of the Aug 1-20 export and production numbers. Malaysia’s Aug 1-20 exports are expected to be down nine to 10 per cent and the actual data is due tomorrow from cargo surveyor,” he said.

At the close, the CPO futures contract for September 2021 declined RM47 to RM4,505 per tonne, October 2021 fell RM62 to RM4,356 per tonne, November 2021 lost RM63 to RM4,238 per tonne, December 2021 decreased by RM58 to RM4,164 per tonne, January 2022 dipped RM47 to RM4,110 per tonne and February 2022 eased RM33 to RM4,073 per tonne.

Total volume improved to 89,353 lots from yesterday’s 63,392 lots, while open interest increased to 284,560 contracts from 255,763 contracts previously.

The physical CPO price for August South remained at RM4,600 per tonne.

Source: BERNAMA News Agency