KUALA LUMPUR: Crude palm oil (CPO) futures prices closed lower for the second consecutive trading day yesterday due to persistent weakness in the Chicago soybean market, said a dealer.
Phillip Futures derivative product specialist David Ng said the narrowing spread between soybean oil and palm oil would allow consumers to have a better option to choose.
However, higher production and stocks level anticipated in August will also weigh on the CPO prices, he said.
Going forward, he said the support level for palm oil was seen at RM2,050 a tonne and reiterated immediate resistance at RM2,080 a tonne.
Spot month September 2014 fell RM25 to RM2,074 a tonne, October 2014 declined RM22 to RM2,065 a tonne, November dipped RM20 to RM2,068 a tonne, and December 2014 slipped RM19 to RM2,085.
The volume advanced to 40,824 lots from 40,507 previously while open interest increased to 283,882 contracts from 283,460. On the physical market, August South slid RM10 to RM2,100 a tonne.Bernama
Source : New Straits Times