Cpo Futures Closes Lower On Lack Of Demand

By Zarul Effendi Razali

KUALA LUMPUR, April 25 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives (BMD) extended their weaker performance to close lower today due to continued soft demand for the commodity and profit-taking post-Raya holiday.

Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said the broader weakness in soft oils has forced palm oil to trade lower as palm oil is still seen at a premium over competing soft oils.

“The market is whispering Malaysian palm oil export for the April 1-25 period might have dropped by 15-16 per cent, and now the focus will be on the April 1-20 palm oil production data from the Southern Palm Oil Millers Association (SPPOMA), UOB Kay Hian and then from the Malaysian Palm Oil Association (MPOA),” he told Bernama today.

He said the Indonesian market is expected to revert to its pre-Ramadan domestic market obligation (DMO) on palm oil export proportion.

“Also, the market is aware that Indonesia palm oil export levies and export duties for May 1-15 are expected to go down from the current rates,” he added.

At today’s close, the May 2023 contract slipped by RM29 to RM4,081 per tonne, June 2023 dropped by RM55 to RM3,811, and July 2023 fell by RM70 to RM3,635.

Additionally, the August 2023 and September 2023 notes went down RM69 each to RM3,566 and RM3,550, respectively, and October 2023 dropped RM68 to RM3,551.

Total volume increased to 71,514 lots from 70,774 on Thursday, while open interest weakened to 204,938 contracts from 206,956 contracts.

The physical CPO price for April South decreased by RM50 to RM4,200 per tonne.

The market was closed on Monday due to the Hari Raya holiday.

-- BERNAMA