MARKET DEVELOPMENT
CPO Prices End Higher In Anticipation Of Lower Production
CPO Prices End Higher In Anticipation Of Lower Production
26/12/2014 (Bernama) - Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives ended broadly higher today on stronger demand amid anticipation of lower production.
Phillip Futures Sdn Bhd derivatives dealer David Ng said the deteriorating weather condition in the East coast of Peninsular Malaysia had offset weaker export estimates as reported by cargo surveyors.
"Heavy rain will delay harvesting activities and affect yield level, thus resulting in a decline in production. This will lower the overall stock level in the country which would bolster prices going forward.
"We locate support level at RM2,150 a tonne and immediate resistance at RM2,280 a tonne," he told Bernama.
At the close, January 2015 and February 2015 increased RM33 each to RM2,250 and RM2,252 a tonne, respectively, March 2015 gained RM32 to RM2,250 a tonne and April 2015 added RM31 to RM2,249 a tonne.
Volume declined to 32,884 lots from 51,113 lots recorded on Wednesday, while open interest fell to 208,166 contracts from 229,727 contracts previously.
On the physical market, January South stood at RM2,260 a tonne, up from RM2,230 a tonne on Wednesday.
Bursa Malaysia and its subsidiaries were closed yesterday for Christmas holiday.
Phillip Futures Sdn Bhd derivatives dealer David Ng said the deteriorating weather condition in the East coast of Peninsular Malaysia had offset weaker export estimates as reported by cargo surveyors.
"Heavy rain will delay harvesting activities and affect yield level, thus resulting in a decline in production. This will lower the overall stock level in the country which would bolster prices going forward.
"We locate support level at RM2,150 a tonne and immediate resistance at RM2,280 a tonne," he told Bernama.
At the close, January 2015 and February 2015 increased RM33 each to RM2,250 and RM2,252 a tonne, respectively, March 2015 gained RM32 to RM2,250 a tonne and April 2015 added RM31 to RM2,249 a tonne.
Volume declined to 32,884 lots from 51,113 lots recorded on Wednesday, while open interest fell to 208,166 contracts from 229,727 contracts previously.
On the physical market, January South stood at RM2,260 a tonne, up from RM2,230 a tonne on Wednesday.
Bursa Malaysia and its subsidiaries were closed yesterday for Christmas holiday.