CPO futures close lower for second day

KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended lower for the second consecutive day, tracking the soybean oil’s weak performance on the US Chicago Board of Trade (CBOT) and the Dalian Commodity Exchange.

Singapore-based Palm Oil Analytics owner and co-founder Dr Sathia Varqa told Bernama that the reinstatement of the Movement Control Order (MCO 3.0) was also dragging the market down.

Palm oil trader David Ng also shared the same opinion, locating support for CPO at RM4,300 per tonne and resistance at RM4,450 per tonne.

At the close, CPO futures contract for May 2021 fell RM72 to RM4,788 per tonne, June 2021 and July 2021 both declined RM18 to RM4,606 per tonne and RM4,350 per tonne, respectively, while August 2021 slipped RM24 to RM4,125 per tonne.

Total volume was reduced to 61,953 lots from 63,493 lots on Monday, while open interest edged down to 261,165 contracts from 263,364 contracts previously.

The physical CPO price for May South was unchanged at RM4,820 per tonne. – Bernama