MARKET DEVELOPMENT
CPO futures rebound on tight supply
CPO futures rebound on tight supply
26.10.2021 (www.theedgemarkets.com) - KUALA LUMPUR (Oct 25): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended higher on tightened inventories and limited capacity for exports, says a dealer.
Palm oil trader David Ng said the palm oil supply tightness situation would likely remain, given the limited recovery of yield due to shortages of skilled harvesters.
“The persistent labour issues continue to support sentiment in the near term. We locate support at RM4,850 and resistance at RM5,050,” he told Bernama.
CGS-CIMB Futures Sdn Bhd in its note said that soybeans were modestly lower on profit-taking and technical selling but managing a modestly higher week-on-week finish.
“Beans continued to follow global vegetable oils while watching the harvest pace in the United States. There was more talk of China buying US beans during the week, but no announced sales,” the research house said.
The US soybeans are the most attractively priced on the global market.
Soybean oil was down modestly relative to recent gains on profit-taking and a lower price move in palm oil and canola, while soybean meal was up on product spread adjustments, it added.
Meanwhile, according to cargo surveyor Intertek Testing Services on Monday, exports of Malaysian palm oil products for Oct 1-Oct 25 fell 12.1% to 1,208,722 tonnes, from 1,375,463 tonnes shipped during Sept 1-Sept 25.
At the close, the CPO futures contract for November 2021 increased by RM56 to RM5,244 a tonne, and December 2021 rose RM52 to RM5,088 a tonne.
January 2022 was up RM45 to RM4,969 a tonne, February 2022 added RM37 to RM4,862 a tonne, March 2022 improved by RM30 to RM4,746 a tonne and April 2022 surged RM26 to RM4,621 a tonne.
Total volume slipped to 46,478 lots from 73,052 lots on Friday (Oct 22), while open interest narrowed to 237,389 contracts from 260,656 contracts previously.
The physical CPO price for November South was RM50 higher at RM5,280 a tonne.
https://www.theedgemarkets.com/article/cpo-futures-rebound-oct-25-2021-tight-supply