The crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives (BMD) ended weaker amid lower export estimates and weaker oil market prices, said palm oil trader David Ng.
He also said the CPO price closed below RM4,000 per tonne as prices continue to be pressured by lower exports.
“The weakness in the crude oil and soya bean oil market during Asian hours trading also contributed to the decline.
“We locate support at RM3,700 per tonne and resistance at RM4,300 per tonne,” he told Bernama.
During the Aug 1-31, 2022 period, cargo surveyor AmSpec Malaysia estimated palm oil exports at 1.19 million tonnes, lower by 3% against 1.22 million tonnes in July 2022.
However, Bernama cited, Intertek Testing Services estimates were slightly better at 1.29 million tonnes against 1.27 million tonnes previously.
Meanwhile, Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said China’s Covid-19 related fresh lockdowns were also a concern over the demand on palm oil.
He said that oil prices fell amid fears that global economy could slow down further with the renewed restrictions to curb Covid-19 in China.
At the close, the CPO futures contract for spot month September 2022 slipped by RM143 to RM3,860 a tonne, October 2022 shed RM143 to RM3,981 a tonne, November 2022 fell by RM150 to RM3,994 a tonne and December 2022 eased RM162 to RM4,014 a tonne.
January 2023 slid RM79 to RM4,046 a tonne and February 2023 declined RM169 to RM4,082 a tonne.
Total volume was reduced to 52,076 lots from 74,461 lots on Tuesday, while open interest rose to 236,347 contracts from 185,767 contracts previously.
The physical CPO price for September South was RM100 lower to RM4,100 a tonne.
The CPO futures market was closed on Wednesday for the National Day celebration.
