The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended lower today on traders’ concerns over higher production and stockpiles, said a dealer.
Palm oil trader David Ng said the traders’ reactions were apparent after the Malaysian Palm Oil Board (MPOB) reported higher stockpiles at above the two million-tonne mark, putting pressure on the market and prices.
“We locate support level at RM1,900 and resistance level at RM2,050 a tonne,” he told Bernama.
Meanwhile, a news report on India’s restrictions on the imports of refined palm oil also weighed on CPO prices, which was lower in sync with the weaker soybean oil prices on the US Chicago Board of Trade (CBOT) and China’s Dalian Commodity Exchange.
At the close, spot month May 2020 declined RM24 to RM2,036 per tonne, June 2020 decreased RM22 to RM2,012 per tonne, July 2020 trimmed RM26 to RM1,994 per tonne and August 2020 eased RM23 to RM2,000 per tonne.
Volume decreased to 48,644 lots from 50,167 lots last Friday, while open interest increased to 264,505 contracts from 263,659 contracts previously.
On the physical market, May South decreased RM2.50 to RM2,020 per tonne.