12.11.2020 (www.theedgemarkets.com) - KUALA LUMPUR (Nov 12): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives has extended its rally for the fourth consecutive day today, boosted by a weaker ringgit against the US dollar.

At 6pm, the local currency stood at 4.1280/1330 versus the greenback compared with Wednesday's close of 4.1270/1320.

Palm oil trader David Ng said the anticipation of a lower stockpile, coupled with higher soybean prices on the Chicago Board of Trade is seen to support the market in the near term.

“We locate the next support level at RM3,300 per tonne, while resistance is at RM3,450 per tonne,” he told Bernama.

At the close, the CPO futures contract for November 2020 and December 2020 increased RM50 to RM3,549 per tonne and RM3,511 per tonne, respectively.

Meanwhile January 2021 added RM45 to RM3,391 per tonne, while February 2021 perked RM40 to RM3,307 per tonne.

Total volume declined to 58,501 lots from 58,736 lots on Wednesday, while open interest inched up to 269,643 contracts from 265,454 previously.

The physical CPO price for November South rose by RM40 to RM3,510 per tonne.

https://www.theedgemarkets.com/article/cpo-futures-extend-rally-fourth-consecutive-day