MARKET DEVELOPMENT
Weather Concerns Lift CPO Futures Higher
Weather Concerns Lift CPO Futures Higher
30/10/2015 (Bernama) - Crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives extended gains for a second day today as concerns about the weather sparked higher demand for the commodity, a dealer said.
"The market anticipates lower production for this month given the current weather circumstances. The weaker ringgit is also supporting the market.
"However, high inventory level in the country will weigh down on prices going forward," Phillips Futures Sdn Bhd dealer David Ng Heng Soon told Bernama.
He said the next support level will be at RM2,280 a tonne while immediate resistance at RM2,400 a tonne.
At the close, November 2015 rose RM8 to RM2,251 a tonne, both December 2015 and January 2016 was up RM19 each to RM2,300 and RM2,341 a tonne respectively, while February 2016 gained RM18 to RM2,374 a tonne.
Volume surged to 54,979 lots from 38,886 lots on Tuesday, while open interest improved to 242,807 contracts from 223,056 contracts previously.
On the physical market, November South increased RM40 to RM2,250 a tonne.
"The market anticipates lower production for this month given the current weather circumstances. The weaker ringgit is also supporting the market.
"However, high inventory level in the country will weigh down on prices going forward," Phillips Futures Sdn Bhd dealer David Ng Heng Soon told Bernama.
He said the next support level will be at RM2,280 a tonne while immediate resistance at RM2,400 a tonne.
At the close, November 2015 rose RM8 to RM2,251 a tonne, both December 2015 and January 2016 was up RM19 each to RM2,300 and RM2,341 a tonne respectively, while February 2016 gained RM18 to RM2,374 a tonne.
Volume surged to 54,979 lots from 38,886 lots on Tuesday, while open interest improved to 242,807 contracts from 223,056 contracts previously.
On the physical market, November South increased RM40 to RM2,250 a tonne.