CPO Futures Close Mixed Ahead of MPOB Report on Rising Production and Stocks

CPO futures on Bursa Malaysia Derivatives closed mixed on Friday as traders locked in profits ahead of the weekend and the release of the Malaysian Palm Oil Board's (MPOB) July supply and demand report on August 10.

According to Fastmarkets Palm Oil Analytics senior analyst Sathia Varqa, selling pressure throughout the session erased a brief wave of buying interest, weighing on most contracts towards the end of trading.

The Malaysian Palm Oil Association estimated that Malaysian palm oil production for the period of July 1-31 increased by 7.54 per cent, consistent with UOB Kay Hian's estimate of an average increase of eight per cent from June.

Bloomberg and London Stock Exchange Group surveys showed that Malaysia's palm oil stocks at the end of July are expected to increase to between 2.61 million and 2.62 million tonnes, up from 2.54 million tonnes in June.