MARKET DEVELOPMENT
CPO futures close higher tracking better soybean oil futures during Asian hours
CPO futures close higher tracking better soybean oil futures during Asian hours
20.08.2022 (www.theedgemarkets.com) - KUALA LUMPUR (Aug 19): The crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives (BMD) rebounded from Thursday's losses to end higher, supported by soybean oil futures recovering performance during the Asian hours, a dealer said.
Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said the better soybean oil futures on the Chicago Board of Trade (CBOT) was driven by strong pullback from crucial support zone in crude oil on Thursday.
"The weaker ringgit against the US dollar is also seen to be supportive to the local CPO as it makes palm oil cheaper in the international markets.
"The CPO volumes on BMD have been lower this week and it increases the illiquidity with a wider difference in bid or ask values, resulting in volatility," he told Bernama.
He also shared that local CPO was trading at a discount of US$519 over CBOT soybean oils and at a discount of US$119 per tonne over gas oil.
At the close, CPO futures contract for spot month September 2022 increased by RM31 to RM4,090 a tonne, October 2022 added RM55 to RM4,101 a tonne, November 2022 was RM50 higher at RM4,093 a tonne, and December 2022 improved RM52 to RM4,103 a tonne.
January 2023 and February 2023 jumped RM53 each to RM4,132 a tonne and RM4,181 a tonne respectively.
Total volume inched up to 59,652 lots from 58,831 lots on Thursday, but open interest eased to 183,505 contracts from 240,786 contracts previously.
The physical CPO price for August South was RM50 higher at RM4,200 a tonne.