Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives Exchange extended its losses for the second consecutive day on persistent profit-taking.
Philips Futures Sdn Bhd dealer David Ng said sentiment was weighed down by firmer competing vegetable oils futures markets, anticipated lower exports, coupled with weaknesses in the Chicago Board of Trade and Dalian Commodity Exchange.
“We locate support at RM2,800 per tonne and immediate resistance at RM2,900 a tonne,” he added.
Meanwhile, the Solvent Extractors’ Association of India reported that the country’s import of refined, bleached and deodorised (RBD) palmolein from November 2015 to October 2016 surged 58% over the corresponding period due to the difference in duties for crude and refined oils.
The association said India’s total vegetable oil imports for the period was up by only 1%, while CPO import was drastically reduced, due to higher import of RBD palmolein at the cost of CPO.
At close, December 2016 and January 2017 declined RM28 each to settle at RM2,831 and RM2,824 a tonne respectively, February 2017 fell RM24 to RM2,814 a tonne, March 2017 dropped RM27 to RM2,796 a tonne, while April 2017 eased RM33 to RM2,773 a tonne.
Turnover expanded to 61,843 lots from yesterday’s 56,634 lots, while open interest rose to 258,521 contracts from 253,468 contracts previously. On the physical market, November South was RM40 lower at RM2,900 a tonne. — Bernama