CPO futures end higher as Indonesia mulls change in DMO policy
25/03/2024 (The Malaysian Reserve), THE crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed higher today due to robust export estimates for Malaysia, while Indonesia may impose restrictions on its exports, a dealer said.
Palm oil trader David Ng said Indonesia is mulling a change in its domestic market obligation (DMO) policy, which could limit exports and increase the desirability of Malaysian palm oil.
“Prices are well supported above RM4,200 and a major resistance is seen at RM4,380,” he told Bernama.
At the close, the spot month April 2024 contract rose RM45 to RM4,352 a tonne, May 2024 added RM62 to RM4,314 a tonne, and June 2024 climbed RM59 to RM4,247 a tonne.
July 2024 increased RM48 to RM4,154 a tonne, August 2024 put on RM38 to RM4,063 a tonne, and September 2024 garnered RM39 to RM3,997 a tonne.
Total volume narrowed to 69,993 lots from last Friday’s 74,296 lots, while open interest improved to 289,030 contracts from 288,214 contracts previously.
The physical CPO price for April South perked up RM20 to RM4,380 a tonne from RM4,360 a tonne recorded last Friday.– BERNAMA