KUALA LUMPURv (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended lower Friday, tracking the weakness in rival soybean oil futures which dipped more than 4% on the US Chicago Board of Trade (CBOT) overnight and the Dalian Commodity Exchange.
Singapore-based Palm Oil Analytics’ owner and co-founder Dr Sathia Varqa said the local CPO market was also dragged by the plunge in crude oil prices during the US/Europe trading yesterday.
"The renewed wave of COVID-19 infections has threatened demand outlook, and it is strong enough to tip CPO futures to erase over 120 points on all contract months,” he told Bernama.
Concurring with Sathia’s views, palm oil trader David Ng said the local CPO futures were traded lower today after the overnight soybean oil prices hit a limit down on the CBOT.
"We locate support at RM3,620 per tonne and resistance at RM3,800 per tonne," he said.
At the close today, the CPO futures contract for April 2021 fell RM135 to RM4,025 per tonne, May 2021 eased RM152 to RM3,864 per tonne, June 2021 was down RM171 to RM3,692 per tonne, while July 2021 was RM171 lower at RM3,563 per tonne.
Total volume increased to 83,107 lots from 46,196 lots on Thursday, while open interest rose to 268,778 contracts from 230,593 contracts previously.
The physical CPO price for April South lost RM150 to RM4,050 per tonne.