CPO futures end lower for fifth consecutive days

By Zairina Zainudin

KUALA LUMPUR, June 21 (Bernama) -- Weak market fundamentals continued weighing on the crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives, sending the market to its fifth consecutive days of downtrend today.

Singapore-based Palm Oil Analytics’ owner and co-founder Sathia Varqa said the trading pattern was mixed but the futures market managed to pare all of the losses towards closing to end nearly unchanged from yesterday’s prices.

“A massive sell-off in palm and soya bean oil on Dalian Commodities Exchange, weakness in June 1-20 exports data, plus higher palm exports coming out from Indonesia ahead of peak production months. (All these) combined to depress palm futures.

“Nevertheless, bargain hunting following the low prices supported the futures market (from further losses),” he told Bernama. 

At the close, the CPO futures contract for spot month July 2022 fell RM51 to RM5,21 a tonne, September 2022 slipped RM1 to RM4,980 a tonne and October 2022 lost RM15 to RM4,940 a tonne. 

However, August 2022 was RM5 better at RM5,065 a tonne.

Total volume decreased to 84,565 lots today from 94,727 lots on Monday while open interest narrowed to 295,727 contracts from  310,748 contracts yesterday. 

The physical CPO price for July South went down RM150 to RM5,300 a tonne.

-- BERNAMA