KUALA LUMPUR, Feb 26 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended lower for the second consecutive day today as the market was weighed by ongoing weak sentiment, analysts said.
Singapore-based Palm Oil Analytics owner and co-founder Dr Sathia Varqa said the absence of positive news made it difficult for the market to find a base for a solid rebound.
“Any rebound will have to come from bargain (hunting) and help from a weaker ringgit, but with just one leg the market failed to reverse the losses,” he told Bernama.
Meanwhile, Sathia said the Indonesian government is mulling on raising palm oil export levy to support the expansion of its palm biodiesel programme.
“Decision will be made next week. Any increase in Indonesian levy is positive for Malaysian CPO export as this will narrow the Indonesian price discount to Malaysia,” he added.
At the close, the CPO futures contract for March 2020 and April lost RM20 each to RM2,460 and RM2,430 per tonne, respectively, while May 2020 slipped RM19 to RM2,419 per tonne and June 2020 dropped RM18 to RM2,412 per tonne.
Volume rose to 84,969 lots from 84,798 lots on Tuesday, while open interest increased to 340,891 from 334,615 contracts previously.
On the physical market, March South was RM100 lower at RM2,500 per tonne.
CPO Futures, Sathia Varqa, demand, Indonesia, export levy