Inventory concerns push CPO prices lower
KUALA LUMPUR: Crude palm oil (CPO) futures prices remained lower yesterday as concerns over high inventory curbed demand for the commodity, said Phillip Futures derivative products specialist, David Ng.
He said the local CPO stocks increased 1.7 per cent in September compared to the previous month, which put further pressure on the market.
Ng, however, said the strong export performance and persistent weakness in the ringgit might continue to bolster the CPO market performance.
Phillip Futures has maintained its forecast on immediate support at RM2,150 per tonne, with immediate resistance at RM2,220 per tonne, where a breach above this level could trigger further demand.
Meanwhile, under the 2015 Budget, the government has allocated RM41 million for replanting purposes, in a bid to increase production amid ageing trees in the country.
At the close, November 2014 trimmed RM11 to RM2,196 per tonne, December 2014 slipped RM9 to RM2,182 per tonne, and January 2015 fell RM10 to RM2,191 per tonne.
A new contract month, February 2015 was introduced at RM2,198 per tonne.
Volume increased to 48,456 lots from 47,791 lots on Thursday while open interest advanced to 321,075 contracts against 318,992 contracts previously.
On the physical market, October South was unchanged at RM2,220 per tonne. Bernama