By Danni Haizal Danial Donald
KUALA LUMPUR, Aug 27 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended its four-day winning streak to close lower on Tuesday due to profit-taking, said a dealer.
Fastmarkets Palm Oil Analytics senior analyst Sathia Varqa said that with the external market continuing to be strong, profit-taking has diminished the buying momentum.
Palm oil trader David Ng said the weaker soybean and crude oil prices also weighed on market sentiment.
“We see support at RM3,850 a tonne and resistance at RM4,000 a tonne,” he told Bernama.
Meanwhile, Hap Seng Consolidated Bhd (HSCB) expects CPO prices to be under pressure, particularly during its high cropping season.
HSCB is a diversified conglomerate with six core businesses namely plantations, property investment and development, credit financing, automotive, fertilisers trading and building materials.
The company said palm oil producers continued to face inflationary pressures and high production costs, it said in a filing with Bursa Malaysia today.
At the close, spot month September 2024 decreased RM16 to RM4,005 a tonne, October 2024 slid RM8 to RM3,958 a tonne and November 2024 contract dropped RM1 to RM3,923 a tonne.
The December 2024 contract inched RM6 lower to RM3,900 a tonne, the January 2025 contract fell RM10 to RM3,889 a tonne and the February 2025 contract declined RM14 to RM3,882 a tonne.
Total volume declined to 87,640 lots from Monday’s close of 96,898 lots, while open interest fell to 225,283 contracts from 226,995 contracts previously.
The physical CPO price for September South rose RM10 to RM4,050 per tonne.
-- BERNAMA
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