KUALA LUMPUR (Nov 22): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed lower on Monday (Nov 22), weighed down by the overnight losses in the soybean oil market on the Chicago Board of Trade (CBOT).
Singapore-based Palm Oil Analytics’ owner and co-founder Dr Sathia Varqa said the decline in crude oil price also dragged the CPO futures market lower.
At press time, the benchmark Brent crude slipped 0.1% to US$78.92 per barrel.
“Crude oil prices fell to a seven-week low on excess supply concern amidst rising Covid-19 cases in Europe,” he told Bernama.
However, he said the weaker Southern Peninsula Palm Oil Millers' Association's (SPPOMA) production data had cushioned the fall in CPO prices.
SPPOMA on Monday revealed the Nov 1-20 production data was lower by 2.4%, compared to the same period last month.
At the close, the CPO futures contract for December 2021 decreased by RM41 to RM5,396 a tonne; January 2022 lost RM33 to RM5,172 a tonne; February 2022 declined RM34 to RM4,959 a tonne; and March 2022 dipped RM33 to RM4,767 a tonne.
Meanwhile, April 2022 and May 2022 shed RM34 each to RM4,593 a tonne and RM4,445 a tonne respectively.
Total volume shrank to 38,084 lots from 58,164 lots on Friday (Nov 19), while open interest eased to 235,279 contracts from 258,518 contracts previously.
The physical CPO price for December South was down by RM50 to RM5,420 a tonne.