CPO futures end lower on first trading day of 2024, tracking soybean oil weakness

Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended lower on the first trading day of 2024, tracking the weakness of soybean oil on the Chicago Board of Trade (CBOT).

Palm oil trader David Ng said the sluggish export pace also continued to weigh on market sentiment.

“Slower seasonal demand from China and India is causing the sluggishness in terms of demand.

“We see support at RM3,600 a tonne and resistance at RM3,850 a tonne,” he told Bernama.

Meanwhile, Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said the market is now awaiting the year-end Malaysian palm oil stocks assessment as the Malaysian Palm Oil Board December supply and demand preview will be out this week.

“Intertek Testing Services estimated the Malaysian palm oil export for December 2023 at 1,378,930 tonnes, down by 9.91% from November.

“The market is now waiting for AmSpec and Societe Generale de Surveillance’s projection as well as the full-month production estimates by the Southern Peninsular Palm Oil Millers Association, UOB Kay Hian, and the Malaysian Palm Oil Association,” he added.

At the close, the spot month January 2024 contract decreased RM29 to RM3,633 per tonne, February 2024 edged down RM51 to RM3,644 per tonne, while March 2024 and April 2024 eased RM61 each to RM3,660 per tonne and RM3,657 per tonne respectively.

May 2024 shed RM69 to RM3,639 per tonne and June 2024 declined RM63 to RM3,614 per tonne.

Total volume slipped to 48,688 lots from 51,554 lots on Friday, and open interest widened to 215,342 contracts from 214,704 previously.

The physical CPO price for January South slid RM30 to RM3,670 per tonne.