CPO Futures End Mostly Lower Tracking Weaker Soybean Prices

By Danni Haizal Danial Donald

KUALA LUMPUR, Aug 28 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended mostly lower on Wednesday, tracking weaker soybean prices, said a dealer. 

Palm oil trader David Ng said the stronger ringgit against the United States (US) dollar also weighed on market sentiment.

“We see support at RM3,800 a tonne and resistance at RM4,000 a tonne,” he told Bernama.

Meanwhile, Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said CPO futures were seen trading sideways today, driven by negative cues from the US and South American soybean oil markets.

“Malaysia palm oil export during Aug 1-25 period estimated by Intertek Testing Services at 1.06 million tonnes, down by 14.9 per cent and by AmSpec Agri Malaysia at 1.01 million tonnes, down 14.05 per cent from their respective export estimates for July 1-25 period.

“The Southern Palm Oil Millers Association (SPPOMA) data shows palm oil production during Aug 1-25 was down under one per cent on a month-on-month basis,” he said

At the close, spot month September 2024 increased RM15 to RM4,020 a tonne, October 2024 rose RM1 to RM3,959 a tonne, and the November 2024 contract dropped RM3 to RM3,920 a tonne.

The December 2024 contract inched RM5 lower to RM3,895 a tonne, the January 2025 contract fell  RM9 to RM3,880 a tonne, and the February 2025 contract declined RM9 to RM3,873 a tonne. 

Total volume declined to 62,281 lots from Tuesday’s close of 87,640, while open interest slid to 223,767 contracts from 225,283 previously.

The physical CPO price for September South dropped RM10 to RM4,040 per tonne.

-- BERNAMA