KUALA LUMPUR (Dec 22): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed higher on Wednesday in tandem with the stronger soybean oil performance on the US Chicago Board of Trade (CBOT), said a dealer.
Palm oil trader David Ng said gains were also supported by the expectation of weaker output in the coming weeks.
“However, weaker demand is putting pressure on prices.
"We locate support at RM4,300 per tonne and resistance at RM4,650 per tonne,” he told Bernama.
Ng said Malaysia's palm oil exports figures by cargo surveyor Intertek Testing Services, AmSpec Agri Malaysia, and Societe Generale de Surveillance (SGS) all showed declining demand.
Intertek Testing Services reported that palm oil exports for Dec 1-20, 2021 decreased to 1.07 million tonnes from 1.13 million tonnes shipped during the same period last year.
Independent inspection company, AmSpec Agri Malaysia said exports of Malaysian palm oil products during the same period fell to 996,331 tonnes from 1.07 million tonnes previously, while SGS also reported a decrease in palm oil exports to 1.10 million tonnes from 1.15 million tonnes in the previous month.
“Export estimates shows lower demand. This is mainly because of seasonally weaker demand from China and India, while the recent high prices have also curbed demand,” he added.
At the close, CPO futures contract for January 2022 increased RM78 to RM4,931 a tonne, February 2022 gained RM65 to RM4,663 a tonne, March 2022 improved RM64 to RM4,448 a tonne, April 2022 added RM65 to RM4,284 a tonne, May 2022 climbed RM64 to RM4,168 a tonne, and June 2022 was higher by RM63 to RM4,096 a tonne.
Total volume went down to 42,887 lots from 45,487 lots on Tuesday, while open interest widened to 250,087 contracts from 249,897 contracts previously.
The physical CPO price for January South was RM50 higher at RM4,950 a tonne from RM4,900 a tonne on Tuesday.
Sumber: The Edge Markets