05/12/2024 (Bernama), Kuala Lumpur - The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed higher due to concerns over weaker production caused by recent floods in Malaysia.

Palm oil dealer David Ng said higher soybean oil prices on the Chicago Board of Trade (CBOT) also lifted market sentiment.

“We observe support for CPO prices at RM5,050 per tonne and resistance at RM5,200 per tonne,” he told Bernama.

Citing independent inspection company, AmSpec Agri Malaysia, Ng said Malaysian palm oil exports for Nov 1-30 fell 10.35 per cent month-on-month due to the seasonally lower demand for palm oil.

He said South Peninsular Palm Oil Millers Association (SPPOMA) data shows that south peninsula mills’ palm oil production estimates for the Nov 1-30 versus Oct 1-31 were down by 5.30 percent.

“The market is now waiting for full-month production estimates by the Malaysian Palm Oil Association (MPOA), which is expected to be out by this week or nest week,” he added.

At the close, the spot month December 2024 contract rose RM45 to RM5,332 per tonne, January 2025 jumped RM102 to RM5,278 per tonne, and February 2025 added RM103 to RM5,135 per tonne, March 2025 went up RM92 to RM 4,972 per tonne, April 2025 gained RM73 to RM4,803 per tonne, and May 2025 declined RM57 to RM4,652 per tonne.

Trading volume jumped to 83,156 lots from 119,811 lots yesterday while open interest inched down to 235,695 contracts 236,748 contracts previously.

The physical CPO price for December South was RM50 to RM5,400 per tonne.

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