CPO Futures End Higher Due To Weaker Production Prospects

By Danni Haizal Danial Donald

KUALA LUMPUR, Aug 26 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed higher on Monday due to prospects of a weaker production pace in the country, said a dealer.

Palm oil trader David Ng told Bernama that stronger crude oil prices also supported the positive market sentiment. 

“We see support at RM3,850 a tonne and resistance at RM4,000 a tonne,” he said.

Fastmarkets Palm Oil Analytics senior analyst Sathia Varqa said the rise in crude oil prices due to fresh escalation in the Middle East and a clearer signal over the United States interest rate cuts in September has sparked a buying frenzy across vegetable oils. 

According to reports, Soybean futures closed higher on Monday during daytime trading at the Dalian Commodity Exchange, as the most active soybean contract for January 2025 delivery gained 41 yuan (about US$5.76) to close at 4,260 yuan per tonne.

Meanwhile, Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said Indonesia’s probable plans of B50 biodiesel mandates in 2025 also influenced the market sentiment. 

At the close, spot month September 2024 increased by RM45 to RM4,021 a tonne, October 2024 rose by RM50 to RM3,966 a tonne, and November 2024 contract grew by RM57 to RM3,924 a tonne.

The December 2024 contract inched up RM55 to RM3,906 a tonne, the January 2025 contract surged by RM52 to RM3,899 a tonne, and the February 2025 contract gained RM58 to RM3,896 a tonne. 

Total volume increased to 96,898 lots from Friday’s close of 69,609 lots, while open interest advanced to 226,995 contracts from 223,891 contracts previously.

The physical CPO price for September South rose by RM40 to RM4,040 per tonne.

-- BERNAMA