A dealer said palm oil is affected by price movements in rival oils as they compete for a share in the global vegetable oils market.
"Yesterday, the market also traded lower in reaction to weaker export pace over the past weeks. We locate the next support at RM2,600 and resistance at RM2,750 a tonne," palm oil trader David Ng told Bernama.
Meanwhile, Singapore-based Palm Oil Analytics’ owner and co-founder Dr Sathia Varqa said CPO futures ended the week on a lower note weighed down by weaker exports, easier performance on the Dalian Commodity Exchange and an uncertain production outlook.
"Although for the Aug 1-20 period, Southern Palm Oil Millers Association projected a flat production versus July 1-20, the market is not in a mood to pare losses.
"CPO finished the week unchanged from Monday.
"Next week, the market may rebound on the back of a slower rise in production," he said.
For the week just-ended, the CPO futures contract traded higher except for Friday, taking the cue from soybean oil prices on the Chicago Board of Trade, Dalian Commodity Exchange, movement of the ringgit against the US dollar, as well as the expectation of lower export figures.
On a Friday to Friday basis, the CPO futures contract for September 2020 rose RM41 to RM2,798 per tonne, October 2020 and December 2020 added RM35 each to RM2,721 per tonne and RM2,655 per tonne, respectively, while November 2020 gained RM34 to RM2,681 per tonne.
Weekly volume eased to 211,993 lots from the previous week's 294,006 lots, while open interest trimmed to 237,675 contracts from 241,736 contracts a week earlier.
On the physical market, September South eased RM30 to RM2,810 per tonne. - Bernama
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