The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended lower yesterday, tracking the weaker soybean oil performance on the US Chicago Board of Trade (CBOT) during the Asian hours trading session. However, palm oil trader David Ng said losses were capped by a stronger export estimation as well as anticipation of lower output in the coming weeks. “We locate support at RM4,400 per tonne and resistance at RM4,580 per tonne, ” he told Bernama.
Malaysian palm oil is losing its price competitiveness, said Maybank Kim Eng Research, citing creeping imports and declining exports.
Noting that Malaysia's stockpile — as reported by the Malaysian Palm Oil Board (MPOB) — is often viewed as a proxy to the region’s stockpile, the research house said the palm oil sector runs the risk of ending the price rally prematurely if the rising stockpile is left unchecked.