04/11/2022 (The Edge Markets), Kuala Lumpur - Crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives rebounded to end higher on Friday, lifted by better sentiment brought about by stronger soybean oil prices.

Palm oil trader David Ng said however the gains were capped by the expectation of growing stock level in the country.

“We locate support at RM4,000 and resistance at RM4,500,” Ng told Bernama.

Meanwhile, Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said the Bursa Malaysia CPO futures continued to trade firmer on Friday despite profit-taking on Thursday.

“The continuous rally in the Chicago Board of Trade (CBOT) soy oil futures, the resumption of a bullish trend in Chinese vegetable oil futures and the firmer South American crude degummed soybean (CDSBO) prices markets are the main reasons behind the bullish momentum,” he shared.

On the production front, he noted UOB Kay Hian had estimated Malaysia’s palm oil production in October at 2% to 6% higher than in September, while exports were seen in the range of 1.43 million-1.48 million tonnes.

“Thus the stronger production would result in an increase in Malaysian palm oil October-end stocks,” he added.

At the close, contracts for November 2022 increased by RM29 to RM4,182 a tonne, December 2022 added RM21 to RM4,274 a tonne and January 2023 gained RM30 to RM4,367 a tonne.

February 2023 contracts improved RM37 to RM4,409 a tonne, March 2023 advanced RM47 to RM4,402 and April 2023 rose RM53 to RM4,370 a tonne.

Total volume fell to 60,646 lots from 64,084 lots on Thursday, while open interest narrowed to 199,305 contracts from 262,219 contracts on Thursday.

The physical CPO price for November South remained unchanged at RM4,200 a tonne.

https://www.theedgemarkets.com/article/cpo-futures-rebound-end-higher-stronger-soy-oil-prices