WORLD

CPO FUTURES END LOWER DUE TO WEAKER SOYBEAN ON CBOT

25/06/2024 09:25 PM

By Danni Haizal Danial Donald

KUALA LUMPUR, June 25 (Bernama) -- Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended lower on Tuesday due to weaker soybean oil market on the Chicago Board of Trade and Dalian palm olein prices, said a dealer.

Palm oil trader David Ng said market sentiment was also influenced by weaker demand.

“We see support at RM3,800 a tonne and resistance at RM3,950 a tonne,” he told Bernama.

Meanwhile, Fastmarkets senior analyst Sathia Varqa said CPO futures sank to a five-week low as traders focused on waning exports and losses in related vegetable oils.

“Losses were also exacerbated by declines in related vegetable oil complex on the Dalian Commodity Exchange and from appreciation in the ringgit,” he said.

Sathia also noted that Malaysia’s June 1-25 exports were down by 16 to 17 per cent versus the same period in May.

“This is a larger decline compared to the June 1-20 fall of 8-13 per cent, reflecting exports struggling to outpace May’s strong performance,” he said.

At the close, the spot month July 2024 contract fell by RM40 to RM3,897 a tonne, August 2024 dropped by RM40 to RM3,874 and September 2024 was RM39 lower at RM3,859.

October 2024 declined by RM36 to RM3,852 a tonne, November 2024 fell by RM32 to RM3,856 and December 2024 dropped RM28 to RM3,874.

Total volume increased to 65,240 lots from Monday’s 40,082 while open interest fell to 211,517 contracts from 211,737 previously.

The physical CPO price for June South was RM30 lower at RM3,950 per tonne.

-- BERNAMA

 

 

 


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