KUALA LUMPUR, March 6 (Bernama) — The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed lower today on the back of weaker Dalian Commodity Exchange and soybean oil market.
Palm oil trader David Ng said news that India may impose higher duty on palm oil imports have added downward pressure on prices.
“Hence, we locate support at RM4,150 and resistance at RM4,400,” he told Bernama.
According to international news report, India has been considering raising its import duty on palm oil to support local farmers reeling from a crash in domestic rapeseed prices, in which the increase could lift local prices, making the tropical oil less competitive compared to rival soyoil and sunflower oil.
At today’s close, the March 2023 contract fell RM58 to RM4,250 per tonne, April 2023 was lower by RM73 to RM4,270 and May 2023 dropped RM74 to RM4,283.
Meanwhile, the June 2023 note slid RM71 to RM4,265 per tonne, July 2023 decreased RM61 to RM4,229 and August was RM60 lower at RM4,181.
Total volume fell to 34,581 lots from 49,640 lots on Friday while open interest rose to 202,491 contracts from 169,194 previously.
The physical CPO price for March South slipped RM50 to RM4,300 per tonne.
Source: BERNAMA News Agency
