CPO FUTURES END LOWER ON RISING STOCK CONCERNS

By Durratul Ain Ahmad Fuad

KUALA LUMPUR, July 4 (Bernama) --The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended lower as concerns over rising stock levels are weighing down on sentiment, said a trader. 

Palm oil trader David Ng said the Chicago Board of Trade soybean oil market is closed today, given that July 4 is the Independence Day holiday in the United States. 

“We see price support level at RM4,000 per tonne and resistance at RM4,150 per tonne,” he told Bernama.

Meanwhile, ahead of Malaysian Palm Oil Board June supply and demand previews tomorrow, Mumbai-based Sunvin Group commodity research head Anilkumar Bagani estimated Malaysian palm oil stocks at the end of June rising 5.789 per cent to 1.854 million tonnes on the back of a four per cent decrease in production and a 10.7 per cent decline in exports. 

“Bloomberg Survey estimates the end stocks at 1.82 million tonnes with a six per cent decline in production and a 10 per cent fall in exports.

“The Reuters Poll also estimated June end stocks rising to 1.83 million tonnes with a 10 per cent decline in exports and a five per cent loss in production. The market is waiting for Malaysian Palm Oil Association’s full month production data for palm oil,” he said. 

At the close, the spot month July 2024, August 2024, November 2024 and December 2024 contracts eased RM16 each to RM4,117 a tonne, RM4,082 a tonne, RM4,036 a tonne, and RM4,036 a tonne. 

The September 2024 and October 2024 contracts fell RM15 to RM4,067 a tonne and RM4,048 a tonne, respectively. 

Total trading volume shrank to 63,312 lots from Wednesday’s 75,698 lots, while open interest improved to 228,811 contracts from the previous 222,349 contracts.

The physical CPO price for July South remained unchanged at RM4,150 per tonne. 

-- BERNAMA