CPO futures continue to rise on expectation output would be lower due to bad weather
19/10/2022 (The Edge Markets), Kuala Lumpur - Crude palm oil (CPO) futures on Bursa Malaysia Derivatives continued their upward momentum to end higher on Wednesday (Oct 19), on expectation that bad weather would result in lower output of the commodity, a dealer said.
Palm oil trader David Ng noted that CPO futures had risen for three straight days, on expectation that bad weather would crimp production.
“CPO futures continue to rally, as concerns over bad weather affecting output continue to lift sentiment in the near term. Bad weather will result in lower output.
“We locate support at RM3,700 and resistance at RM4,400 a tonne,” he told Bernama.
At the close, the contract for November 2022 rose RM88 to RM4,021 per tonne, December 2022 gained RM98 to RM4,082 per tonne, and January 2023 climbed RM107 to RM4,118 per tonne.
The February 2023 contract was RM105 higher at RM4,136 per tonne, March 2023 added RM99 to RM4,141 per tonne, while April 2023 edged up RM83 to RM4,130 per tonne.
Total volume narrowed to 102,050 lots from 106,741 lots on Tuesday, while open interest decreased to 211,594 contracts from 313,804 contracts previously.
The physical CPO price for October South gained RM100 to RM4,050 per tonne.