KUALA LUMPUR, March 9 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives extended last week's losses to finish lower today, as a double whammy of COVID-19 and crude oil price crash sent global equities, commodities, bonds and currencies spiralling downwards.
Singapore-based Palm Oil Analytics’ owner and co-founder Dr Sathia Varqa said crude oil prices were in the eye of the storm today, sinking to a 29-year low (lowest since 1991).
"The fall in crude oil prices has sent shock waves throughout the global markets, and palm oil was not spared.
"Adding to the woes is the dismal March 1-10, 2020 palm oil export outlook, which is estimated to be down 19 per cent (from the same period in the previous month)," he told Bernama.
Global markets were badly rattled by the crude oil price war launched by Saudi Arabia after a deal to cut production between Russia and the Organisation of the Petroleum Exporting Countries (OPEC) collapsed.
At the close, the CPO futures contracts for March 2020 and April 2020 fell RM112 each to RM2,336 and RM2,352 per tonne respectively, May 2020 retreated RM119 to RM2,332 per tonne, and June 2020 was RM116 lower at RM2,337 per tonne.
Volume, however, rose to 93,848 lots compared with 69,389 lots last Friday, while open interest improved to 326,981 contracts from 306,292 contracts previously.
On the physical market, March South decreased RM120 to RM2,360 per tonne.
TAGS: CPO futures, Palm oil, Crude oil, OPEC, Sathia Varqa