02.07.2021 (www.theedgemarkets.com) - KUALA LUMPUR (July 2): Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives has maintained its upward momentum for the fourth consecutive day today, boosted by the anticipation of higher demand, especially from India.

“CPO ended higher on the prospects of higher exports in the coming weeks after India reduced its palm oil import duty.

“Expectations of a weaker output is also supporting the short term sentiment,” palm oil trader David Ng said.

He said the support level is now located at RM3,700 per tonne, and the resistance level at RM3,880 per tonne.

The Indian government has reduced its import duty on CPO to 10% from 15%, effective June 30 till Sept 30, 2021.

At the close, the CPO futures contract for July 2021 rose RM56 to end the week at RM3,898 per tonne, August 2021 advanced RM71 to RM3,864 per tonne, September 2021 expanded RM79 to RM3,789 per tonne and October 2021 gained RM87 to RM3,713 per tonne.     

Total volume decreased further to 49,807 lots from 59,307 lots on Thursday, while open interest narrowed to 233,852 contracts from 248,408 contracts previously.   

The physical CPO price for July South improved by RM80 to RM3,980 per tonne. 

https://www.theedgemarkets.com/article/cpo-futures-extend-gains-better-prospects