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02 May 2023. Tuesday
KUALA LUMPUR (May 2): Crude palm oil (CPO) futures on Bursa Malaysia Derivatives (BMD) ended higher on Tuesday (May 2), as the market made price adjustments with related markets after the extended weekend holiday, a dealer said.
However, the market was not able to hold on to its gains, said Mumbai-based Sunvin Group commodity research head Anilkumar Bagani.
“Palm oil demand has been constantly under pressure due to the broader selloff seen in soft oils.
“The soybean, sunflower, and rapeseed oils have been on a bearish run in the last couple of weeks. It has (diminished) the supply issue of palm oil and the focus is mainly on palm oil’s unusual premium over soft oils, (impacting) fresh destination demand,” he told Bernama.
He said palm oil demand is also languishing due to sizable inventories at key destinations.
Cargo surveyor Intertek Testing Services (ITS) has estimated April exports at 1.18 million tonnes, down by 18.19% from 1.44 million tonnes in March.
At Tuesday’s close of trade, the May 2023 contract improved by RM79 to RM4,016 per tonne, June 2023 added RM71 to RM3,611, and July 2023 rose RM83 to RM3,421.
August 2023 was RM100 higher at RM3,385 per tonne, September 2023 added RM79 to RM3,374, and October 2023 expanded RM65 to RM3,367.
Total volume slid to 52,995 lots from 110,077 on Friday (April 28), while open interest went up slightly to 211,332 contracts from 211,155 contracts.
The physical CPO price for May South remained unchanged at RM4,150 per tonne.
