By Engku Shariful Azni Engku Ab Latif
KUALA LUMPUR, Sept 10 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives closed lower on Tuesday amid rising stock levels in the country, said palm oil trader David Ng.
He also said that the market sentiment was also affected by the weaker exports.
“We see support at RM3,800 a tonne and resistance at RM4,000 a tonne,” he told Bernama.
The Malaysian Palm Oil Board (MPOB) today reported that Malaysia’s CPO production increased by 2.9 per cent to 1.89 million tonnes in August 2024 from 1.84 million tonnes in July 2024.
In its latest report on the palm industry’s performance, MPOB said the palm kernel output also rose by 6.7 per cent month-on-month to 455,976 tonnes in August from 427,342 tonnes previously.
In terms of inventory, MPOB disclosed that CPO stocks rose by 2.5 per cent to 953,145 tonnes against 930,099 tonnes in July.
It said processed palm oil stockpile surged 12.8 per cent to 930,069 tonnes from 824,285 tonnes in the preceding month, while total palm oil stock climbed 7.3 per cent to 1.88 million tonnes from 1.75 million tonnes.
On exports, MPOB said palm oil exports fell 9.7 per cent to 1.53 million tonnes from 1.69 million tonnes in July.
“Palm kernel oil exports declined by 20.7 per cent to 87,167 tonnes from July’s 109,908 tonnes, while palm kernel cake exports slid by 20 per cent to 173,845 tonnes in August against 217,365 tonnes in July,” it said.
At the close, the October spot contract rose RM11 to RM3,945 per tonne.
However, the September 2024 spot contract fell RM4 to RM3,981 per tonne, while November 2024 dipped RM10 to RM3,885 per tonne.
The December 2024 contract dropped RM23 to RM3,841 per tonne, while both January 2025 and February 2025 declined by RM31 to RM3,819 per tonne and RM3,814 per tonne, respectively.
Total volume climbed to 77,959 lots from 57,096 on Monday’s close, while open interest increased to 237,470 contracts compared with 233,734 previously.
The physical CPO price for September South inched down RM10 at RM4,020 per tonne.
-- BERNAMA
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