He said that lndonesia’s reduced export tax may also see some CPO demand shifting away from Malaysia.
"We locate support level at RM4,250 and resistance level at RM4,380 per tonne,” he told Bernama.
Meanwhile, Singapore-based Palm Oil Analytics’ owner and co-founder Dr Sathia Varqa said after three trading days of sharp gains, it was time for profit-taking and consolidation on the CPO futures market.
"The CPO futures contract on Bursa Malaysia Derivatives were down in adjustment to lower Indonesian tax rate,” he said.
He said Indonesia’s CPO reference price for August was set at US$1,048.62 per tonne or down US$45.53 from June, declining for the second successive month to reach the lowest in five months.
"The lower reference prices will bring the tax rate on CPO down to US$93 for August shipment compared to US$116 in July,” he added.
At the close, the CPO futures contract for August 2021 fell RM99 to RM4,590 per tonne, September 2021 eased RM145 to RM4,470 per tonne, October 2021 declined RM114 to RM4,308 per tonne, November 2021 went down RM93 to RM4,180 per tonne, December 2021 decreased RM78 to RM4,100 per tonne and January 2022 deducted RM70 to RM4,037 per tonne.
Total volume fell to 46,483 lots from 62,519 lots on Tuesday, while open interest eased to 240,048 contracts from 256,994 contracts previously.
The physical CPO price for August South rose RM50 to RM4,670 per tonne.