Weakening crude oil, soybean oil prices pressure CPO futures to close lower

Weakening crude oil, soybean oil prices pressure CPO futures to close lower
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KUALA LUMPUR (Sept 23): Crude palm oil futures contracts on Bursa Malaysia Derivatives ended lower on Friday pressured by weakening crude oil and soybean oil prices, a dealer said.

He said that the weaker global sentiment also contributed to the negative sentiment.

“Besides that, the escalating palm oil supply outlook led by rising Indonesia exports and peak production in Malaysia and Indonesia has depressed the crude palm oil futures for two successive days,” another dealer added.

Singapore-based Palm Oil Analytics owner and co-founder Sathia Varqa said data revealed that palm oil production in overall Malaysia for the period of Sept 1-20 rose by 0.71% on a month-on-month comparison.

At the close, CPO futures contracts for the spot month of October 2022 declined RM88 to RM3,673 per tonne, November 2022 reduced RM87 to RM3,710 per tonne, December 2022 erased RM90 to RM3,736 per tonne and January 2023 was RM93 weaker at RM3,760 per tonne.

February 2023 decreased RM81 to RM3,807 per tonne while March 2023 slipped RM76 to RM3,845 per tonne.

Total volume improved to 57,496 lots from 48,285 lots on Thursday while open interest narrowed to 203,306 contracts from 248,103 contracts previously.

Physical CPO price for October South was lower by RM50 to RM3,800 per tonne.