08/01/2015 (Bernama) - Crude palm oil (CPO) futures prices ended higher today amid persistent weakness in the ringgit and anticipation of weaker production.

The ringgit continued its downtrend today to close at 3.58 to the US dollar compared with 3.55 on Tuesday.

Phillip Futures Sdn Bhd derivatives product specialist, David Ng, said higher CPO prices indicated that market was still factoring in lower output and inventory recorded in December.

"This trend will continue until the Malaysian Palm Oil Board releases its monthly report next week.

"However, the narrowing bean oil and palm oil spread will put pressure on CPO prices," he told Bernama today.

He said the support level for CPO was at RM2,280 and immediate resistance at RM2,350.

On demand, Ng said, India was still one of the main importers despite it revising its import duty to 7.5 per cent from 2.5 per cent.

"The impact (higher import duty) is not yet visible but it will see a softer demand in the market due to higher cost of importing CPO to India," he said.

At the close, January 2015 surged RM40 to RM2,349, February 2015 increased RM42 to RM2,346, March 2015 rose RM46 to RM2,330 and April gained RM44 to RM2,311 a tonne.

Volume increased to 54,901 lots from 46,404 lots yesterday while open interest rose to 217,287 contracts from 209,473 contracts previously.

On the physical market, January South was higher at RM,2350 compared with RM2,315 on Tuesday.