CPO FUTURES SNAP TWO-DAY LOSING STREAK, REBOUD AMID SOYBEAN OIL STRENGTH
06/06/2024 (Bernama), Kuala Lumpur – The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed higher today, rebounding from the previous day’s weakness in line with the strength in the soybean oil market, said palm oil trader David Ng.
“We see support (for CPO) at RM3,900 a tonne and resistance at RM4,000,” he told Bernama.
Meanwhile, Fastmarkets senior analyst Sathia Varqa said CPO futures rebounded strongly towards the market close, surging by over 50 points across the board.
He noted that bargain buying, a technical rebound, and strength from the Dalian Commodity Exchange likely sparked the spike in CPO futures buying.
“CPO futures showed a strong recovery sparked by a technical rebound and sustained by higher vegetable oil on Dalian but closed off the high,” he added.
At the close, the spot month June 2024 contract gained RM67 to RM3,935 a tonne, while July 2024 added RM50 to RM3,956 a tonne, and August 2024 increased by RM54 to RM3,960 a tonne.
Meanwhile, September 2024, October 2024, and November 2024 rose by RM55 each to RM3,960, RM3,961, and RM3,969 per tonne, respectively.
Total volume decreased to 54,591 lots from Wednesday’s 66,354 lots, while open interest fell to 215,636 contracts from 215,951 previously.
The physical CPO price for June South was RM30 higher at RM4,000 per tonne.
-- BERNAMA