03.03.2022 (www.theedgemarkets.com) - KUALA LUMPUR (March 2): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed lower on Wednesday on profit taking after a jump of over 3% on Tuesday, dealers said.


Singapore-based Palm Oil Analytics owner and co-founder Dr Sathia Varqa said CPO prices were volatile on Wednesday moving up and down amid profit-taking activities.

“The sense of palm cash prices are too high (and) may have punctured the rally on Wednesday,” he told Bernama.

Meanwhile, palm oil trader David Ng said CPO prices retreated from their intraday high owing to profit-taking activities as well as weakness in the vegetable oil market.

He said the benchmark palm oil contract for May rose 5%in intraday trade to an all-time high of RM7,108 on Wednesday, on concerns over disruptions of vegetable oil supply amid heightened tension in Ukraine following Russia’s invasion.

Soybean oil prices on the Chicago Board of Trade were down 1.3% after hitting an all-time high overnight, he noted.

“We locate support at RM6,300 a tonne and resistance at RM6,800 a tonne,” he added.

At the close on Wednesday, the CPO futures contract for the spot month March 2022 fell RM342 to RM7,821 a tonne, April 2022 decreased RM236 to RM7,199 a tonne, and May 2022 slipped RM102 to RM6,268 a tonne.

Meanwhile, June 2022 was RM23 lower at RM5,932 a tonne, July 2022 eased RM8 to RM5,932 a tonne, and August 2022 decreased RM50 to RM5,720 a tonne.

Total volume rose to 112,858 lots from Tuesday’s close of 81,748 lots while open interest widened to 296,590 contracts from 269,504 contracts previously.

The physical CPO price for March fell RM200 to RM7,900 a tonne.

https://www.theedgemarkets.com/article/cpo-futures-end-lower-profit-taking-0