CPO Futures Slump Amid Weaker Soybean Oil Futures

Crude palm oil (CPO) futures on Bursa Malaysia Derivatives closed lower on Thursday, weighed down by weaker soybean oil futures trading at the Chicago Mercantile Exchange (CME).

The sharp losses in soybean oil futures were due to steep declines in crude oil prices, according to Fastmarkets Palm Oil Analytics senior analyst Sathia Varqa.

Mumbai-based Sunvin Group Commodity Research Head Anilkumar Bagani said the mixed palm oil production estimates and a lack of fresh demand due to palm oil's premium over soybean oil and its narrow spread against gas oil had made buyers cautious.

The Malaysian Palm Oil Association (MPOA) estimated production for Aug 1-20 at 1.08 per cent higher than the July 1-20 period, while UOB Kay Hian estimated production to be between three per cent lower and one per cent higher.