By Durratul Ain Ahmad Fuad
KUALA LUMPUR, July 5 (Bernama) --The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended lower on Friday due to concerns over rising stock levels of the commodity in the country, said palm oil trader David Ng.
Weaker demand, mainly from India and to a certain extent China, also weighed on the commodity’s price, he added.
“Based on today's price performance, we see the price support level at RM4,000 per tonne and resistance at RM4,100,” he told Bernama.
Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said CPO futures were seen easing today on profit-taking after the recent strong recovery and ahead of the long weekend.
“Malaysian markets will be closed on Monday.
“Palm oil is trying to adjust itself now as the demand from key buyer India has been seen easing due to unviable import and processing margins and relatively better stock positions,” he added.
At the close, the spot month July 2024 contract, as well as the August 2024 contract, eased RM29 to RM4,088 and RM4,053 a tonne, respectively.
The September 2024 note dropped RM25 to RM4,042 a tonne, October 2024 slid RM22 to RM4,026, November 2024 shed RM19 to RM4,017 and December 2024 was down by RM17 to RM4,019.
The total trading volume shrank to 51,843 lots from Thursday’s 63,312 lots while open interest improved to 233,507 contracts from 228,811.
The physical CPO price for July South was RM20 lower at RM4,130 per tonne.
-- BERNAMA
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