KUALA LUMPUR, Jan 13 (Bernama) -- Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives retreated from recent gains to close lower on a stronger ringgit against the US dollar coupled with weaker market sentiment.
At 6 pm today, the ringgit stood at 4.0610/0640 against the greenback from 4.0750/0780 at Friday's close.
Palm oil trader David Ng said reports that India is seeking to restrict palm oil imports from Malaysia would also give a negative impact on prices.
“We locate support at RM3,050 and resistance level at RM3,150 per tonne,” he told Bernama.
The decline in CPO futures prices was capped by data from the Southern Peninsular Palm Oil Millers' Association which showed that local CPO production fell 1.47 per cent for Jan 1-10, 2020 period, versus that recorded in the first ten days of December 2019.
At the close, the CPO futures contract for January 2020 and February 2020 slid RM39 each to RM3,092 and RM3,106 per tonne, respectively, while March 2020 fell RM42 to RM3,092 per tonne and April 2020 shed RM50 to RM3,060 per tonne.
Volume increased to 45,891 lots from Friday's close of 44,684 lots, while open interest rose to 280,819 contracts from 279,059 contracts previously.
On the physical market, January South ended at RM3,130 per tonne today.
TAGS: CPO, production palm oil trader, stronger ringgit