The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended lower today as the market continued to be pressured by concerns over higher April production.
Palm oil trader David Ng said a higher production would keep overall stocks in the country elevated and put pressure on prices.
“We locate support at RM1,900 per tonne and resistance at RM2,000 per tonne,” he told Bernama.
The Malaysian Palm Oil Association (MPOA) today revealed that overall CPO production in Malaysia was 19.89 per cent higher in April 2020 than in March 2020.
At the close, spot month May 2020 went down RM38 to RM2,000 per tonne, while June 2020 reduced RM36 to RM1,953 per tonne, July 2020 contracted RM29 to RM1,946 per tonne and August 2020 eased RM24 to RM1,948 per tonne.
Volume increased to 47,438 lots from 41,063 lots on Tuesday and open interest leaped to 260,568 contracts from 249,911 contracts previously.
On the physical market, May South slid RM16 to RM2,010 per tonne.