CPO Futures Slide for Third Day, Weighed Down by Export Slump
Crude palm oil (CPO) futures on Bursa Malaysia Derivatives continued their downward trend, closing lower for the third consecutive day. The decline is in line with weaker soybean oil futures on the Chicago Mercantile Exchange (CME).
According to David Ng, a proprietary trader at Iceberg X Sdn Bhd, concerns over sluggish palm oil exports and rising inventories continue to pressure market sentiment.
Anilkumar Bagani, commodity research head at Sunvin Group in Mumbai, attributed the lower CPO futures to softer Malaysian palm oil export performance. He also noted that higher-than-expected production outlook, coupled with easing energy prices, is contributing to the decline.
Bagani added that the rainy season in Malaysia and Indonesia is promoting further palm oil production gains. As a result, Malaysian palm oil stocks are expected to reach beyond three million tonnes by end-September.