KUALA LUMPUR (Oct 27): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended lower on Wednesday after recording gains for two consecutive days, tracking the overnight soybean oil’s losses in the Chicago Board of Trade (CBOT), a dealer said.
Palm oil trader David Ng said the lower soybean oil price, in general, led to the weakness in CPO prices
“We locate support at RM4,850 a tonne and resistance at RM5,100 a tonne,” he told Bernama.
At the close, the CPO futures contract for November 2021 and December 2022 both decreased RM23 to RM5,300 a tonne and RM5,123 a tonne, respectively.
Meanwhile, January 2022 benchmark palm oil contract slipped by RM46 to RM4,966 a tonne, February 2022 lost RM50 to RM4,847 a tonne, while both March 2022 and April 2022 declined RM51 to RM4,730 a tonne and RM4,665 a tonne, respectively.
Total volume fell to 55,528 lots from 57,366 lots on Tuesday, while open interest narrowed to 245,710 contracts from 248,038 contracts previously.
The physical CPO price for November South was RM30 lower at RM5,350 a tonne.
Source : The Edge Markets