CPO futures close lower on Nov 24, following report of higher output

CPO futures close lower on Nov 24, following report of higher output
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KUALA LUMPUR (Nov 23): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed lower on Tuesday (Nov 23), driven by stronger output data.

The Malaysian Palm Oil Association (MPOA) on Tuesday reported that CPO production for Nov 1-20 increased 0.35%, compared to the first 20 days of last month.

Palm oil trader David Ng told Bernama that the higher output data had put pressure on CPO prices.

“Weaker overnight losses in the soybean oil market on the Chicago Board of Trade (CBOT) also added to the negative sentiment in the market,” he said.

At the close, the CPO futures contract for December 2021 decreased by RM107 to RM5,289 a tonne, January 2022 fell RM113 to RM5,059 a tonne, February 2022 declined RM107 to RM4,852 a tonne, and March 2022 dipped RM98 to RM4,669 a tonne.

Meanwhile, April 2022 dropped RM87 to RM4,506 per tonne, and May 2022 reduced RM78 to RM4,367.

Total volume rose to 57,022 lots, from 38,084 lots on Monday (Nov 22); while open interest went up to 252,815 contracts, from 235,279 contracts previously.

The physical CPO price for December South was down by RM70 to RM5,350 a tonne.