03.06.2021 (www.theedgemarkets.com) - KUALA LUMPUR (June 3): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives continued its rally on Thursday fuelled by concerns over dry US weather that resulted in an uptrend in the global agricultural markets.

Supply shortage worries following bad weather have sent rival soybean oil prices hitting its highest in 10 years.

Strength in the oil market added support to domestic CPO prices, palm oil trader David Ng said.

"We locate support at RM4,000 and resistance at RM4,280," he told Bernama.

Singapore-based Palm Oil Analytics owner and co-founder Dr Sathia Varqa said crude oil prices rose to a two-year high on the back of a strong summer travel demand in the United States.

"However, futures pared over 100 points on news of Indonesia mulling over changes to export levy to be signed in mid-June, plus some profit-taking ahead of the long weekend and May estimate data," he noted.

The CPO market is closed on Monday in conjunction with the official birthday of the Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah.

At the close, the CPO futures contract for June 2021 increased RM96 to RM4,262 per tonne, July 2021 inched up RM78 to RM4,222 per tonne, August 2021 added RM66 to RM4,158 per tonne and September 2021 edged up RM44 to RM4,081 per tonne.

Total volume widened to 99,619 lots from 80,371 lots on Wednesday, while open interest improved to 282,980 contracts compared with 249,496 contracts previously.

The physical CPO price for June South rose RM100 to RM4,300 per tonne.

https://www.theedgemarkets.com/article/cpo-futures-rally-continues-soybean-strength