By Fatin Umairah Abdul Hamid
KUALA LUMPUR, Nov 1 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended higher on Friday, reaching a fresh two-year high for the third consecutive day at above RM4,800 per tonne, amid rising crude oil prices, said palm oil trader David Ng.
He noted that the stronger export pace has boosted market sentiment as higher demand for palm oil could lead to lower stock levels in the country.
“We see prices well supported above RM4,700 a tonne with immediate resistance at RM5,000 a tonne,” he told Bernama.
Meanwhile, Fastmarket Palm Oil Analytics senior analyst Sathia Varqa said that a recent ban on CPO exports from Thailand until December aimed at addressing lower production levels and stabilising local prices, has triggered a buying frenzy in CPO futures.
It was reported recently that Thailand's Department of Internal Trade has temporarily banned the export of raw palm oil due to reduced production caused by drought and plant diseases.
This export ban has significant implications for the global palm oil landscape, particularly as Thailand ranks as the third-largest exporter of CPO to India, following Indonesia and Malaysia.
“With this supply constraint, Malaysian exporters are positioned to capitalise on this opportunity, especially since Indonesian export prices have been relatively high,” he said.
Higher Malaysian export prospects, particularly for CPO, amid an anticipated tight supply market outlook was sufficient to lift the most liquid January contract to more than a two-year high, he added.
At the close, the spot month November 2024 and December 2024 contract surged RM176 to RM4,976 and RM4,914 per tonne, respectively, and January 2025 increased by RM172 to RM4,868 per tonne.
February 2025 rose by RM174 to RM4,808 per tonne, March 2025 added RM166 to RM4,726 per tonne, and April 2025 was RM161 higher to RM4,637 per tonne.
Trading volume increased to 83,410 lots from 82,918 on Wednesday, while open interest declined to 246,507 contracts from 246,955 previously.
The physical CPO price for November South soared RM180 to RM4,980 per tonne.
-- BERNAMA
