KUALA LUMPUR (Oct 28): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended lower, tracking the overnight soybean oil’s losses on the Chicago Board of Trade (CBOT), Palm oil trader David Ng said.
He said the CPO prices were also dragged down by lower crude oil prices, weakening the current sentiment.
“However, expectation of weak production in the coming weeks is supporting palm oil prices in the near term. We locate support at RM4,750 a tonne and resistance at RM5,100 a tonne,” he said.
Oil prices slid for a second straight day after peaking at a seven-year high at the start of the week after a jump in the US crude inventory was discovered, according to reports.
At the time of writing, the benchmark Brent crude oil price fell 1.57% to US$83.25 per barrel.
At the close, the CPO futures contract for November 2021 added RM10 to RM5,320 a tonne, December 2022 decreased RM12 to RM5,111 a tonne, January 2022 slipped by RM37 to RM4,929 a tonne, February 2022 lost RM47 to RM4,800 a tonne, while both March 2022 and April 2022 declined RM51 to RM4,679 a tonne and RM4,554 a tonne, respectively.
Total volume rose to 59,077 lots from 55,528 lots on Thursday, while open interest widened to 250,213 contracts from 245,710 contracts previously.
The physical CPO price for November South was RM10 higher at RM5,360 a tonne.
Sumber: The Edge Markets