KUALA LUMPUR, The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended lower on Wednesday, following an increase in overall stock levels reported by the Malaysian Palm Oil Board (MPOB) for June, according to palm oil trader David Ng.
He said market sentiment was also dampened by expectations of higher production in the coming weeks.
‘We see the price support level at RM3,850 per tonne and resistance at RM4,050,’ Ng told Bernama.
The MPOB report highlighted a 4.35 per cent increase in palm oil stocks to 1.83 million tonnes in June 2024, up from 1.75 million tonnes in May 2024.
In its June 2024 industry performance report, MPOB indicated that Malaysia’s CPO stocks decreased to 925,165 tonnes in June from 979,019 tonnes in May.
‘Processed palm oil stocks rose to 904,304 tonnes in June from 774,192 tonnes previously,’ the report stated.
Additionally, it said that CPO production declined to 1.62 million tonnes in June from 1.70 million tonnes in the preceding month, while palm kernel ou
tput reduced to 367,852 tonnes from 408,326 tonnes previously.
At the close, the spot month July 2024 contract and August 2024 contract eased by RM17 each to RM3,998 a tonne and RM3,963 a tonne, respectively.
September 2024 dropped RM41 to RM3,918 a tonne, October 2024 slid RM52 to RM3,897 a tonne, November 2024 shed RM53 to RM3,891 a tonne, and December 2024 dipped RM51 to RM3,898 a tonne.
Total volume increased to 107,394 lots from Tuesday’s 81,428 lots, while open interest decreased to 229,364 contracts from 235,174 contracts previously.
The physical CPO price for July South was lower by RM30 at RM4,050 per tonne.
Source: BERNAMA News Agency
