By Engku Shariful Azni Engku Ab Latif
KUALA LUMPUR, Aug 12 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed lower on Monday amid signs of weaker exports and concerns over rising output in the coming weeks, said palm oil trader David Ng.
He told Bernama that weaker soybean oil prices also took a toll on the CPO market.
“We see support at RM3,650 and resistance at RM3,800," he said.
Meanwhile, the Malaysian Palm Oil Board (MPOB) reported that Malaysia’s palm oil exports grew by 39.92 per cent to 1.69 million tonnes in July 2024 from 1.21 million tonnes in June 2024.
In its Malaysian Palm Oil Industry’s Performance report for July 2024, MPOB said palm oil stocks fell by 5.35 per cent month-on-month (m-o-m) to 1.73 million tonnes in July 2024 from 1.83 million tonnes in June 2024.
CPO production rose by 13.97 per cent m-o-m to 1.84 million tonnes from 1.62 million tonnes in June, it added.
At the close, the spot month August 2024 contract dropped by RM10 to RM3,830 a tonne, September 2024 slid by RM24 to RM3,779 a tonne, and October 2024 decreased by RM39 to RM3,708.
November 2024 eased by RM47 to RM3,676 a tonne, December 2024 shrunk by RM49 to RM3,669 a tonne and January 2025 depreciated by RM46 to RM3,681 a tonne.
Total volume dropped to 53,784 lots from last Friday’s 58,890 lots at the close, while open interest decreased to 222,038 contracts from 278,122 contracts previously.
The physical CPO price for August South was RM20 lower at RM3,880 per tonne.
-- BERNAMA
