By Danni Haizal Danial Donald
KUALA LUMPUR, Nov 6 (Bernama) -- Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended higher on Wednesday as price rallied above RM4,900 per tonne for January 2025 benchmark contract, a trader said.
Palm oil trader David Ng said the positive market sentiment was supported by stronger export pace and a weaker ringgit against the United States (US) dollar.
“We see support at RM4,800 per tonne and resistance at RM4,950,” he told Bernama.
Meanwhile, Fastmarket Palm Oil Analytics senior analyst Sathia Varqa said CPO futures regained their buying momentum, energised by the expectation of a bullish price outlook.
“Traders are expecting a bullish price outlook based on a tight supply narrative from a leading analyst at one of the biggest palm oil conferences in the world which begins tomorrow in Bali, Indonesia,” he said.
The event is organised by the Indonesia Palm Oil Association (IPOC), better known as GAPKI.
Sathia also noted that the ringgit settled at RM4.40 against the US dollar, in response to volatile movement in the US dollar ahead of the US Federal Reserve benchmark interest rate setting decision on Thursday.
“Added to the currency and financial market volatility, there was anxiety over US presidential election uncertainty which is pointing to a return of Donald Trump,” he added.
At the close, the spot month November 2024 contract rose RM85 to RM4,999 per tonne, December 2024 surged RM102 to RM4,957 per tonne and January 2025 advanced by RM111 to RM4,917 per tonne.
February 2025 rose by RM117 to RM4,862 per tonne, March 2025 added RM114 to RM4,777 per tonne, and April 2025 was RM107 higher at RM4,677 per tonne.
Trading volume decreased to 78,859 lots from 84,057 on Tuesday, while open interest increased to 243,835 contracts from 240,020 previously.
The physical CPO price for November South soared RM40 to RM5,020 per tonne.
-- BERNAMA
