Malaysia: CPO palm oil futures continue to slide amid rising stockpile concerns, soybean oil weakness

Published 2024년 9월 4일

Tridge summary

The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives fell on Wednesday due to concerns over rising stockpiles. Preliminary estimates indicate an inventory increase ahead of the upcoming key crop report. The decline was also influenced by weaker soybean oil prices. However, a selloff in Chicago Board of Trade soybean oil, crude oil, and Intercontinental Exchange canola futures, along with weakness in South American soybean oil free-on-board markets, also played a role. Despite these factors, a bullish undercurrent in Zhengzhou Commodity Exchange rapeseed oil futures and upticks in the Chinese domestic vegetable oil markets helped limit the losses for palm oil.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

KUALA LUMPUR (Sept 4): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives extended its decline on Wednesday amid concerns over rising stockpiles. Palm oil trader David Ng said that preliminary estimates indicate an inventory increase ahead of next week’s key crop report. Weaker soybean oil prices also contributed to the bearish sentiment in the market, he told Bernama. “We see support at RM3,800 per tonne and resistance at RM3,980,” he added. Meanwhile, Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said the decline was due to a selloff in Chicago Board of Trade soybean oil, crude oil, and Intercontinental Exchange canola futures. He said the weakness in South American soybean oil free-on-board markets also contributed to the decline. “However, a bullish undercurrent in Zhengzhou Commodity Exchange rapeseed oil futures and upticks in the Chinese domestic vegetable oil markets have supported palm oil and limited the losses,” he added. At the ...

Source: Theedgemarkets