KUALA LUMPUR, March 8 (Bernama) — The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives continued yesterday’s downtrend to close lower following Chicago Board of Trade (CBOT) Soybean oil futures and crude oil futures that were sharply down overnight.
Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said the buying activities from export destinations front, such as from China, Pakistan, Bangladesh, the USA, the Middle East and Africa, were mostly quiet.
“However, the larger than estimated production losses projected by Malaysian Palm Oil Association (MPOA) and UOB Kay Hian for Malaysia during February had supported the palm oil prices,” he told Bernama.
Meanwhile, Palm oil trader David Ng said the prospect of weaker output and possible lower inventory in coming months are seen as supporting prices in the near term.
“Hence, we locate support at RM4,000 and resistance at RM4,350,” he said.
At today’s close, the March 2023 contract declined by RM24 to RM4,175 per tonne, April 2023 was lower by RM24 to RM4,2176, and May 2023 decreased by RM25 to RM4,180.
Meanwhile, the June 2023 note fell RM30 to RM4,158 per tonne, July 2023 slid RM32 to RM4,120 and August was RM32 lower at RM4,072.
Total volume increased to 49,639 lots from 41,243 lots on Tuesday, while open interest rose to 172,296 contracts from 171,692 previously.
The physical CPO price for March South was up RM20 to RM4,300 per tonne.
Source: BERNAMA News Agency