KUALA LUMPUR (June 29): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives erased gains over the last two days to close lower on Wednesday (June 29) on concern over weaker export data, a dealer said.
Cargo surveyors have projected a fall in exports for the June 1-25, 2022 period.
According to Intertek Testing Services data, exports for the period declined by 13.21% to 990,958 tonnes, from 1.14 million tonnes in the same period in May 2022.
Cargo surveyor Amspec Malaysia stated that exports in the June 1-25 period was down by 19.63% to 888,288 tonnes, from 1.11 million tonnes in the same period last month.
Apart from that, palm oil trader David Ng said weaker soybean oil prices during Asian hours also dampened the CPO market.
"We locate support at RM4,700 a tonne and resistance at RM5,200 a tonne," he told Bernama.
At the close, the CPO futures contract for spot month July 2022 fell RM90 to RM5,069 a tonne, August 2022 declined RM97 to RM4,965 a tonne, benchmark September 2022 trimmed RM86 to RM4,903 a tonne, October 2022 was RM72 lower at RM4,886 a tonne, while November 2022 and December 2022 dipped RM61 each to RM4,892 a tonne and RM4,909 a tonne respectively.
Total volume shrank to 52,249 lots from 63,130 lots on Tuesday, while open interest declined to 259,257 contracts from 272,086 contracts previously.
The physical CPO price for July South was RM50 lower at RM5,200 a tonne.