By Nur Athirah Mohd Shaharuddin
KUALA LUMPUR, Oct 11 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives surged close to RM5,200 per tonne for the January 2025 benchmark contract, reaching the highest level since June 2022, said a trader.
Palm oil trader David Ng said that the rally was driven by the positive report from the Malaysian Palm Oil Board (MPOB), which highlighted lower stock levels in October, weaker production, and stronger exports, all of which are bullish for CPO prices.
“We see support at RM5,100 and resistance at RM5,280 a tonne,” he told Bernama.
Meanwhile, Fastmarket Palm Oil Analytics senior analyst Sathia Varqa said CPO futures gained buying momentum in the second half of the day, following a stagnant morning session, fuelled by bullish MPOB data.
According to MPOB data for October 2024, CPO production fell 1.35 per cent to 1.80 million tonnes, CPO stock declined 10.57 per cent to 943,472 tonnes, while palm oil export improved 11.07 per cent to 1.73 million tonnes.
Citing Intertek Testing Services, Sathia said Malaysia’s palm oil exports for Nov 1-10, 2024 period fell by 80,507 tonnes, or 15.79 per cent, to 429,455 tonnes compared to 509,962 tonnes exported during the same period in the preceding month.
At the close, the spot month November 2024 contract rose RM110 to RM5,270 per tonne, December 2024 surged RM89 to RM5,233 per tonne, and January 2025 advanced by RM95 to RM5,196 per tonne.
February 2025 rose by RM98 to RM5,137 per tonne, March 2025 added RM91 to RM5,029 per tonne, and April 2025 climbed RM82 to RM4,903 per tonne.
Trading volume decreased to 79,094 lots from 123,802 lots on Friday, while open interest narrowed to 238,158 contracts from 239,911 previously.
The physical CPO price for November South soared by RM120 to RM5,280 per tonne.
-- BERNAMA