CPO Futures Close Higher On Weak Production Concerns

By Nur Athirah Mohd Shaharuddin

KUALA LUMPUR, Aug 23 (Bernama) -- The crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives closed higher on Friday due to concerns over weak production, said palm oil trader David Ng.

Ng noted that rising soybean oil prices on the Chicago Board of Trade (CBOT) and stronger crude oil prices also bolstered market sentiment.

“We see support at RM3,700 a tonne and resistance at RM3,900 a tonne,” he told Bernama.

Meanwhile. Fastmarket Palm Oil Analytics senior analyst Sathia Varqa said the CPO futures ended higher in the second half of the day, buoyed by an active cash market and rising prices for palm olein on the Dalian Commodity Exchange.

At the close, the spot month September 2024 and October 2024 contracts increased by RM48 to RM3,976 and RM3,916 a tonne, respectively. 

The November 2024 contract rose by RM41 to RM3,867 a tonne, while the December 2024 contract gained RM37 to RM3,851 a tonne.

January 2025 contract advanced by RM39 to RM3,847 a tonne, and February 2025 contract increased by RM38 to RM3,838 a tonne.

Total volume declined to 69,609 lots from Thursday’s close of 95,069 lots, while open interest increased to 223,891 contracts from 221,143 contracts previously.

The physical CPO price for August South rose by RM50 to RM4,000 per tonne.

-- BERNAMA