CPO Futures Close Higher Amid Middle East Tensions, Crude Oil Rally
By Durratul Ain Ahmad Fuad
KUALA LUMPUR, Oct 7 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives closed higher on Monday, bolstered by strength in the crude oil market amid escalating tensions in the Middle East, said palm oil trader David Ng.
He said concerns over potential disruptions to Iran's oil supply are pushing crude oil prices higher, which in turn is supporting CPO prices as the commodity is used as a biofuel feedstock.
"The ongoing tensions in the Middle East are unlikely to have a long-term impact on CPO prices, as the market is driven primarily by short-term factors.
“We see support at RM4,280 and resistance at RM4,400,” he told Bernama.
Meanwhile, Fastmarkets Palm Oil Analytics senior analyst, Sathia Varqa, said CPO futures began the week in a lacklustre manner ahead of Malaysian Palm Oil Board data due on Wednesday.
He noted that the trading sentiment improved in the second session as buying momentum picked up.
“Expectations of higher September end-month stocks, better production from October onwards, and bouts of profit-taking created selling pressure throughout the day.
“After market close, the Malaysian Palm Oil Association reported that September production fell three per cent from August,” he added.
At the close, the spot month October 2024 contract remained unchanged at RM4,400 per tonne, while November 2024 rose RM34 to RM4,389, December 2024 increased RM43 to RM4,343, January 2025 gained RM51 to RM4,294, February 2025 added RM53 to RM4,238, and March 2025 went up RM50 to RM4,178.
Trading volume fell to 60,148 lots from 99,167 last Friday, while open interest dropped to 249,585 contracts from 251,725 previously.
The physical CPO price for October South was RM10 higher at RM4,430 per tonne.
-- BERNAMA