Cpo Futures End Lower On Lack Of Buying Demand

KUALA LUMPUR, April 26 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives (BMD) remained in its downtrend to close lower today amid a lack of buying demand and positive catalyst, a dealer said.

Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said the BMD CPO futures traded lower and were pressured by weakness in competing vegetable oils and crude oil overnight. 

“The weaker Malaysian palm oil exports during April have also seen pressuring palm oil along with the market expectations of Indonesia to revert back its domestic market obligation (DMO) policy to pre-Ramadan levels, and the Indonesian palm oil export levies and taxes also to fall to previous levels. 

“Malaysian palm oil exports during the April 1-25 period was estimated by Intertek Testing Services to be at 989,658 tonnes, down by 14.04 per cent in comparison to the same period in March,” he told Bernama.

 Anilkumar said the market is now focusing on the April 1-20 palm oil production data from the Southern Palm Oil Millers Association, UOB Kay Hian and also from the Malaysian Palm Oil Association.

At today’s close, the May 2023 contract slipped by RM20 to RM4,061 per tonne, June 2023 dropped by RM47 to RM3,764 per tonne, and July 2023 fell by RM65 to RM3,570 per tonne.

Additionally, August 2023 shed RM58 to RM3,508 per tonne, September 2023 went down RM51 to RM3,449 per tonne and October 2023 dropped RM50 to RM3,501 per tonne.

Total volume decreased to 59,318 lots from 71,514 on Tuesday, while open interest weakened to 204,842 contracts from 204,938 contracts.

The physical CPO price for April South was flat at RM4,200 per tonne.

-- BERNAMA