15.07.2021 (www.theedgemarkets.com) - KUALA LUMPUR (July 14): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives extended its gains to end higher today in line with the Chicago Board of Trade (CBOT) soybean futures on concerns of lower outputs.

Palm oil trader David Ng said CPO prices were also supported by sentiment brought about by the prospect of higher exports in the coming week.

“Higher demand expected in India and China owing to restocking activities.

“Demand from China remained resilient while India which imported 275,915 tonnes of palm oil from Malaysia in June is likely to buy more refined palm oil after the government last month lifted restrictions on its imports for six months. The move is seen aimed at cooling local consumer prices of edible oil.

“We locate support at RM3,900 and resistance at RM4,080 a tonne,” he told Bernama.

Meanwhile, Singapore-based Palm Oil Analytics owner and co-founder Dr Sathia Varqa noted that the weaker ringgit also makes the tropical oil cheaper to international buyers stoking interest.

The local currency fell to a fresh 11-month low after depreciating by 0.26% to settle at 4.2010 against the US dollar, he added.

At the close, the CPO futures contract for July 2021 and August 2021 added RM46 each to RM4,094 and RM4,080 a tonne respectively, September 2021 increased RM44 to RM4,021 a tonne and October 2021 rose RM54 to RM3,963 a tonne.

Total volume fell to 64,793 lots from 72,515 lots on Tuesday, while open interest decreased to 253,018 contracts from 260,576  contracts yesterday.

The physical CPO price for July South increased to RM4,150 a tonne from RM4,120 a tonne on Tuesday.

https://www.theedgemarkets.com/article/cpo-futures-extend-gains-line-cbot-soybean