CPO futures ends higher for third consecutive day
20/12/2023 (The Edge Malaysia), Kuala Lumpur - Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed higher for the third consecutive day on concern over production issues in the coming weeks, a dealer said.
Palm oil trader David Ng said stronger crude oil prices also lifted sentiment in the market.
“Hence, we see support at RM3,650 and resistance at RM3,900,” he told Bernama.
However, Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said the ease of Chinese vegetable oil futures from day-high along with a stronger ringgit has been capping the gains in the CPO futures.
He said the Malaysian palm oil export for Dec 1-20 period estimated by Intertek Testing Services (ITS) was at 837,475 tonnes, down by 8.02% from the Nov 1-20 period.
“The export numbers came within the market expectations for ITS numbers at 836,180 tonnes,” he said.
At the close, the new spot month January 2024 contract rose RM12 to RM3,719 per tonne and February 2024 added RM17 to RM3,759 per tonne.
March 2024 was RM22 firmer at RM3,778 per tonne, April 2024 was up RM18 to RM3,768 per tonne, May 2024 increased by RM12 to RM3,746 per tonne and June 2024 inched up by RM13 to RM3,716 per tonne
Total volume decreased to 46,703 lots from 57,368 on Tuesday while open interest was higher at 261,237 contracts from 218,704 previously.
The physical CPO price for January South gained RM30 to RM3,750 per tonne.