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By Nur Athirah Mohd Shaharuddin
KUALA LUMPUR, Jan 22 (Bernama) -- Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed lower on Wednesday, weighed down by concerns over weakening demand from India due to cheaper alternatives, a trader said.
Palm oil dealer David Ng explained that the concerns have arisen because soybean oil prices in India are relatively cheaper than palm oil.
"Thus, it caused a bit of shifting in demand over to soybean oil which further pressured CPO prices. We see support at RM4,150 a tonne and resistance at RM4,300,” he told Bernama.
Meanwhile, Fastmarkets Palm Oil Analytics senior analyst Dr Sathia Varqa said CPO futures traded sharply lower, erasing 70 per cent of the gains from the last three days, with losses widening in the second session as sentiment turned bearish.
He said the decline was driven by a mixed performance in related oils, a strengthening ringgit, and a poor export demand outlook at the start of the year.
At the close, the new contract month of February 2025 lost by RM44 to RM4,464 per tonne, and the March 2025 contract decreased by RM40 to RM4,319 per tonne.
The April 2025 contract was reduced by RM52 to RM4,208 per tonne, May 2025 fell by RM54 to RM4,134 per tonne, June 2025 declined by RM56 to RM4,096 per tonne, and July 2025 slip RM53 to RM4,080 per tonne.
Trading volume narrowed to 59,237 lots compared with 74,588 yesterday, while open interest eased to 220,165 contracts from 220,729 previously.
The physical CPO price for February South shrank RM20 to RM4,600 per tonne.
-- BERNAMA
