14/12/2022 (The Edge Markets) - The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives settled higher for the second consecutive day as demand for the commodity improved on better market sentiment.

Palm oil trader David Ng said the better performance was influenced by the overnight strong gains in the Chicago soybean oil market.

“Concerns over weaker output and lower stock level in the country also continue to drive prices higher.

“We locate support at RM3,700 per tonne and resistance at RM4,200 per tonne,” he told Bernama.

At the close, December 2022 and January 2023 rose RM59 each to RM3,885 per tonne and RM3,909 per tonne, respectively, while February 2023 strengthened by RM64 to RM3,950 per tonne.

March 2023 increased RM65 to RM3,968 per tonne, April 2023 added RM60 to RM3,964 per tonne and May 2023 gained RM49 to RM3,947 per tonne.

However, the total volume narrowed to 67,586 lots from 79,021 lots on Tuesday while open interest went down to 277,549 contracts from 215,407 contracts previously.

Physical CPO price for December South rose by RM50 to RM4,000 per tonne.

https://www.theedgemarkets.com/article/cpo-futures-ends-higher-second-day