KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives (BMD) closed mixed yesterday as trading was directionless due to the lower ringgit, higher stock outlook, gloomy May export outlook and the likelihood of Indonesia reducing its levy rate.
Singapore-based Palm Oil Analytics owner and co-founder Sathia Varqa said the drop in ringgit to a two-week low cushioned some of the fall in CPO futures.
He said April end-month stocks appear set for a second month of rise, while the May export outlook to India is grim given the devastating impact of the pandemic and growing calls for an Indian national lockdown.
“Market talk is Indonesian plantations are lobbying for the government to reduce the levy rate by US$100 (RM412). If it happens, it will be negative for CPO futures, ” he added.
At the close, CPO futures contract for May 2021 increased RM55 to RM4,594 per tonne, June 2021 declined RM30 to RM4,307 per tonne, July 2021 down RM19 to RM4,042 per tonne and August 2021 decreased RM8 to RM3,854 per tonne.
Total volume eased to 47,953 lots from 53,163 lots on Monday, while open interest edged down to 254,965 contracts from 258,356 contracts previously.
The physical CPO price for May added RM30 to RM4,600 per tonne. — Bernama