KUALA LUMPUR, Aug 1 — Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives reversed yesterday’s gains to close lower today on expectations that palm oil production may increase in the coming week, weighed the commodity prices.
Phillip Futures Sdn Bhd Derivatives Product Specialist David Ng said the improvement in production has pressured the market.
The anticipation of higher production in Sabah and lower soy oil on the Chicago Board of Trade are the main reasons that dragged the commodity’s price down today.
Production in Sabah is seen rebounding the most on a post-El Nino recovery compared with that of other states.
“We locate support at RM2,550 and immediate resistance at RM2,700,” he said.
Spot month August 2017 erased RM13 to RM2,659 a tonne, September 2017 reduced RM24 to RM2,650 a tonne, October 2017 and November 2017, both declined RM21 each to RM2,654 and RM2,655 a tonne, respectively.
Turnover, however, jumped to 38,429 lots from yesterday’s 34,283 lots while open interest increased to 244,475 contracts from 241,576 contracts previously.
On the physical market, August South was unchanged at RM2,690 a tonne. — Bernama
