CPO FUTURES CLOSES HIGHER TRACKING POSITIVE INDICATORS

By Fatin Umairah Abdul Hamid

KUALA LUMPUR, May 6 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended higher on Monday, tracking the higher Chinese market, which reopened after last week’s Labour Day holiday, said a dealer.

Mumbai-based Sunvin Group commodity research head Anilkumar Bagani told Bernama that the soybean futures prices were mostly higher on the Dalian Commodity Exchange.

He also said that the soybean oil futures trading on the Chicago Board of Trade (CBOT) during Asian hours were also seen to be higher, coupled with the weaker ringgit against the US dollar, which further provided some support to the local CPO futures market. 

Meanwhile, palm oil trader David Ng said the CPO prices were also lifted by higher crude oil prices and lower output estimates by the Southern Peninsula Palm Oil Millers Association (SPPOMA), which showed Malaysian palm oil production eased 23.93 per cent during the May 1-5 period. 

As of the time of writing, benchmark Brent crude was trading 0.71 per cent higher at US$83.55 per barrel.

“We see support at RM3,800 per tonne and resistance at RM3,950 per tonne,” said Ng.

At the close, the spot month of May 2024 added RM19 to RM3,909 a tonne, June 2024 gained RM23 to RM3,893 a tonne, while July 2024, August 2024, and September 2024 rose RM18 to RM3,862, RM3,850 and RM3,846, respectively.

October 2024 increased RM21 to RM3,850.

Total volume fell to 39,361 lots from Friday’s 40,674 lots, while open interest dropped to 227,559 contracts from 230,394 contracts previously.

The physical CPO price for May South was RM10 higher at RM3,940 a tonne.

-- BERNAMA