KUALA LUMPUR (April 19): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended lower on Friday due to persistent weakness in the soybean oil market on the Chicago Board of Trade, said a dealer.

Palm oil trader David Ng noted that market sentiment has been influenced by concerns regarding the anticipated surge in output over the coming weeks, which is perceived as exerting pressure on the market

“We see support at RM3,850 a tonne and resistance at RM4,050 a tonne,” he told Bernama.

Meanwhile, in Genting Plantations Bhd’s 2023 integrated annual report, chairman Datuk Seri Mohd Zahidi Zainuddin said demand for palm products is projected to increase, supported by the price competitiveness of CPO against other vegetable oils.

"Palm oil prices are expected to be well supported at current levels in 2024 due to the seasonally low output cycle during the first half of the year, as well as overall supply constraints, with Indonesia increasing local consumption for its food and biodiesel industry," he said.

At the close, spot month May 2024 slid RM69 to RM4,056 a tonne, June 2024 shed RM58 to RM3,981, and July 2024 lost RM58 to RM3,926.

August 2024 narrowed by RM51 to RM3,882 a tonne, September 2024 was lower by RM42 to RM3,853 a tonne, while October 2024 dropped by RM38 to RM3,842 a tonne.

Total volume increased to 97,851 lots from Thursday’s 77,559 lots, while open interest slid to 263,873 contracts from 266,188 contracts previously.

The physical CPO price for May South slipped by RM50 to RM4,150 a tonne.