By Nur Athirah Mohd Shaharuddin
KUALA LUMPUR, Aug 21 (Bernama) -- The crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives closed higher on Wednesday as the market expects production pace to remain sluggish during the peak production period, said palm oil trader David Ng.
“We see support at RM3,700 a tonne and resistance at RM3,900 a tonne," he told Bernama.
Earlier, Fitch Solution company BMI has revised upward its forecast for the average price of Bursa Malaysia-listed third-month CPO futures contracts in 2024 to RM3,850 per tonne from RM3,750 per tonne, reflecting a 2.7 per cent increase.
However, it said the CPO prices would face bearish headwinds into 2025 with the expected average price of RM3,700 a tonne up to end-2024 as the prices have not dropped throughout the second half of 2024 as projected.
At the close, spot month September 2024 contract increased by RM22 to RM3,888 a tonne, October 2024 climbed by RM33 to RM3,805 a tonne and November 2024 rose by RM39 to RM3,754 a tonne.
December 2024 gained RM42 to RM3,735 a tonne, January 2025 improved by RM42 to RM3,727 a tonne and February 2025 surged by RM40 to RM3,718 a tonne.
Total volume rose to 64,853 lots from Tuesday’s close of 60,626 lots, while open interest dropped to 222,870 contracts from 228,666 contracts previously.
The physical CPO price for August South increased by RM20 to RM3,940 per tonne.
-- BERNAMA
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