By Danni Haizal Danial Donald

KUALA LUMPUR, April 25 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives hit a two-month low on Thursday, due to weaker soybean oil futures on the Chicago Board of Trade (CBOT), said a dealer.

Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said the market sentiment was also weighed down by the Dalian Commodity Exchange’s refined, bleached, and deodorised palm olein during Asian trading hours.

“The market is breaking the technical support price of RM3,800 a tonne for the benchmark month of July following the selloff in the soybean oil futures on CBOT,” he told Bernama.

Meanwhile, palm oil trader David Ng said market sentiment was also influenced by the rising output in the coming weeks.

“We are entering seasonally higher production periods which will raise the overall stock level in the country, which is bad for prices. Hence, we see support at RM3,800 a tonne and resistance at RM4,000 a tonne,” he said.

At the close, the spot month May 2024 contract slid RM82 to RM3,958 a tonne, June 2024 shed RM67 to RM3,917 a tonne, and July 2024 lost RM68 to RM3,874 a tonne. 

August 2024 dipped RM60 to RM3,854 a tonne, September 2024 was lower by RM61 to RM3,840 a tonne, while October 2024 dropped by RM63 to RM3,844 a tonne.

Total volume surged to 117,394 lots from Wednesday’s 66,058 lots, while open interest increased to 255,102 contracts from 253,400 contracts previously.

The physical CPO price for May South slipped by RM110 to RM4,020 a tonne.

-- BERNAMA