CPO futures end lower on weaker soybean oil

CPO futures end lower on weaker soybean oil
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KUALA LUMPUR (Sept 17): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended the week lower, tracking overnight losses in the Chicago soybean oil market, a dealer said. 

Palm oil trader David Ng said the market also reacted to reports that more foreign labour participation would be coming onstream in the plantation industry.

It has been reported that the government is planning to permit foreign workers into the country to ease the labor shortage in the plantation sector.

"We locate support at RM4,200 and resistance at RM4,450," said Ng.

At the close, the CPO futures contract for October 2021 slipped RM49 to RM4,518 a tonne, November 2021 weakened RM70 to RM4,370 a tonne and December 2021 erased RM68 to RM4,261 a tonne. 

January 2022 and February 2022 depreciated RM67 each to RM4,164 and RM4,074 a tonne, respectively, while March 2022 dropped by RM74 to RM3,978 a tonne.

Total volume increased to 83,218 lots from 50,048 lots on Wednesday, while open interest improved to 272,628 contracts from 241,443 contracts previously.

The physical CPO price for September South fell RM80 to RM4,680 a tonne. 

Bursa Malaysia Derivatives was closed yesterday in conjunction with Malaysia Day.