KUALA LUMPUR (April 15): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed weaker on Monday due to concerns over the rising output of the commodity, coupled with weaker demand.

Palm oil trader David Ng said the expectation of lower demand post-festivity weighed on sentiment despite the Malaysian Palm Oil Board (MPOB) reporting lower stock levels last month.

“Hence, we see support at RM4,150 a tonne and resistance at RM4,300,” he told Bernama.

According to the MPOB, Malaysia’s total palm oil stocks dropped 10.68% to 1.71 million tonnes in March 2024 from 1.92 million tonnes in February 2024.

At the close, the spot month April 2024 contract slid RM93 to RM4,405 a tonne, May 2024 shed RM94 to RM4,277 and June 2024 lost RM78 to RM4,204.

The July 2024 note narrowed by RM69 to RM4,141 a tonne while August 2024 was lower by RM65 to RM4,074 and September 2024 dropped RM61 to RM4,021 a tonne.

Total volume increased to 90,982 lots from Friday’s 66,678 lots, while open interest was lower at 272,031 contracts from 267,644 contracts previously.

The physical CPO price for April South slipped RM50 to RM4,460 a tonne.

https://www.theedgemarkets.com/node/708007