22/08/2022 (The Edge Markets), Kuala Lumpur - The crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives (BMD) closed higher on Monday (Aug 22) on better demand for the golden fruits.

Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said the local market was influenced by bullish sentiments exhibited on the Chicago Board of Trade (CBOT) soya oil and Dalian Commodity Exchange refined, bleached and deodorised (RBD) palm olein futures.

However, he said gains were limited, as investors sought more clarity on the export performance during the first 20 days of the month.

“Malaysia palm oil export during Aug 1-20 came in a wider range with cargo surveyor Intertek Testing Services estimating it at 728,000, up 9.1%, while AmSpec Group, on a contrasting line, [estimated it] at 622,000, down by 3.8%.

“The 100,000 difference between [the] two estimates is very abnormal and failed to give any concrete view [on] the overall export scenario,” he told Bernama.

Anilkumar said the market is now waiting for the Aug 1-20 palm oil production data from UOB, as well as the Malaysian Palm Oil Association (MPOA) and Southern Peninsula Palm Oil Millers’ Association (SPPOMA) for guidance to assess the August-end palm oil inventories.

Meanwhile, he said demand from India is expected to pick up ahead of several festivals, including Deepavali, in the next two months, amidst domestic soybean crush.

At the close, CPO futures contract for spot month September 2022 increased by RM73 to RM4,163 a tonne, October 2022 improved RM52 to RM4,153 a tonne, November 2022 was RM67 higher at RM4,160 a tonne, and December 2022 gained RM77 to RM4,180 a tonne.

January 2023 jumped RM82 to RM4,214 a tonne, and February 2023 climbed RM72 to RM4,253 a tonne.

Total volume declined to 47,905 lots, from 59,652 lots on Friday (Aug 19); while open interest widened to 228,669 contracts, from 183,505 contracts previously.

The physical CPO price for September South was RM50 higher at RM4,250 a tonne.

https://www.theedgemarkets.com/article/cpo-futures-end-higher-aug-22-better-demand