The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed lower today, weighed by strong competition from lower Indonesian export prices, a dealer said.
Singapore-based Palm Oil Analytics owner and co-founder Dr Sathia Varqa said the republic’s higher export volume also led towards the sell-off in Malaysian CPO futures.
“A sharp fall in Indonesia’s August CPO reference price to US$872.27 (US$1=RM4.45) and retention of the domestic market obligation (DMO) rule but at a higher ratio for this month is set to displace Malaysia’s export share, leading to lower prices in Malaysia,” he told Bernama.
Indonesia is trying to clear its high stock by waiving its export levy from July 15 to Aug 31, 2022.
At the close, the CPO futures contract for spot month August 2022 slipped RM242 to RM4,093 a tonne, September 2022 decreased RM230 to RM4,065 a tonne, October 2022 fell RM216 to RM4,060 a tonne, and November 2022 declined RM199 to RM4,090 a tonne.
December 2022 was RM189 lower at RM4,143 a tonne and January 2023 dipped RM184 to RM4,206 a tonne.
Total volume slipped to 75,145 lots from 77,180 lots last Friday while open interest climbed to 269,965 contracts from 215,234 contracts previously.
The physical CPO price for August South fell RM200 to RM4,200 a tonne.
Source: New Straight Times
