Mixed close for CPO futures on lower ringgit


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.

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

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

palm oil , futures , Bursa Malaysia , ringgit , India , exports ,

   

Next In Business News

Sanichi MD, PNE PCB ED launch takeover of BSL Corp
KAB partners Janakuasa in Vietnam renewable energy venture
Industries spent more on environ protection, Johor leads among states
Lagenda acquires Kuantan parcel for township development
Local market sentiment remains weak despite Powell remarks
Nor Shamsiah urges FIs to be creative to develop new, innovative solutions
Trump’s tariffs led to billions of losses, Fed research shows
World Bank lowers Malaysia GDP growth due to pandemic
Resorts World Las Vegas a US$4.3b bet on city’s comeback
Fed throws China a curveball just when it seeks stability

Stories You'll Enjoy


Vouchers