KUALA LUMPUR, The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives continued to close lower on Wednesday, pressured by the expectations of higher output in the coming weeks, said a dealer.
According to palm oil trader, David Ng, the market anticipated higher production this month after data from the Southern Peninsular Palm Oil Millers Association (SPPOMA) showed output in southern Peninsular Malaysia rose 17.8 per cent for the July 1- 20 period compared to the same period last month.
‘We see support at RM3,850 and resistance at RM4,000,’ he told Bernama.
At the close, the spot month August 2024 contract slid RM20 to RM3,992 a tonne, September 2024 slipped RM39 to RM3,949 a tonne, and October 2024 fell RM44 to RM3,925 a tonne.
November 2024 declined RM43 to RM3,912 a tonne, December 2024 dropped RM39 to RM3,914 a tonne, and January 2025 shed RM35 to RM3,926 a tonne.
Total volume surged to 71,404 lots from Tuesday’s 47,003 lots, while open interest expanded to 221,901 contracts from 21
7,401 contracts previously.
The physical CPO price for July South fell RM20 to RM4,040 per tonne.
Source: BERNAMA News Agency