13/10/2022 (The Edge Markets), Kuala Lumpur - Crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives reversed Tuesday’s losses and ended higher on Wednesday (Oct 12), as the weaker ringgit supported demand, making Malaysia’s palm oil more competitive.

However, palm oil trader David Ng said rising production and stock levels continue to pressure prices.

“We locate support at RM3,500 and resistance at RM4,000,” he told Bernama.

At 6pm, the local currency fell to 4.6820/6855 against the US dollar, from Monday’s close of 4.6720/6745.

At the close, contracts for October 2022 and November 2022 added RM39 each to RM3,523 per tonne and RM3,683 per tonne respectively. December 2022 contracts rose RM44 to RM3,736 per tonne, and January 2023 eked up RM50 to RM3,776 per tonne.

February 2023 soared RM237 to RM3,815 per tonne, and March 2023 improved RM63 to RM3,848 per tonne.

Total volume slipped to 62,983 lots from 64,895 lots on Tuesday, while open interest narrowed to 263,079 contracts from 264,999 contracts previously.

Physical CPO price for October South was unchanged at RM3,650 per tonne.

https://www.theedgemarkets.com/article/weaker-ringgit-lifts-cpo-futures-oct-12