CPO futures close higher on Aug 8, tracking soybean oil gains on CBOT
09/08/2022 (The Edge Markets) - Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended higher on Monday (Aug 8), tracking gains on the Chicago Board of Trade (CBOT), a dealer said.
Palm oil trader David Ng said market investors also remained cautious ahead of supply and demand data by the Malaysian Palm Oil Board (MPOB), which is due on Wednesday.
“We locate the support level at RM3,500 a tonne, and resistance at RM4,200 a tonne,” he told Bernama.
Meanwhile, Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said CPO futures ended higher, following the bullish rally in the overnight CBOT soybean oil market during Asian trading hours.
“The rally in soy oil futures on CBOT, as well as at the South American cash markets on Friday have allowed palm oil to manoeuvre higher, while keeping its attractive discount over soybean oil intact,” he said.
At the close, the CPO futures contract for spot month August 2022 gained RM115 to RM4,135 a tonne, September 2022 appreciated RM165 to RM4,088 a tonne, October 2022 inched up RM193 to RM4,071 a tonne, and November 2022 rose RM190 to RM4,069 a tonne.
Meanwhile, December 2022 was RM180 higher at RM4,093 a tonne and January 2023 climbed by RM176 to RM4,142 a tonne.
Total volume shrank to 48,345 lots from 54,468 lots on Friday, while open interest improved to 243,140 from 195,371 contracts previously.
The physical CPO price for August South increased by RM100 to RM4,150 a tonne.