KUALA LUMPUR: Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed higher today on better demand, tracking the stronger soybean prices on the Chicago Board of Trade, said a dealer.
Singapore-based Palm Oil Analytics owner and co-founder Dr Sathia Varqa said the market rebounded from its losses last week buoyed by bargain buying, a weaker ringgit against the US dollar and on talk of lower output.
“CPO Futures was in recovery mode today; rebounding by up to a high of RM70 with support at RM2,900 per tonne and eventually closing up higher by RM64 at RM2,901 per tonne.
“Ringgit was down by 0.15% against the US dollar; and with concerns over India’s import ban still in the headlines, the market is now focused on Jan 1-20 output estimates,” he said.
At the close, the CPO futures contract for February 2020 rose RM49 to RM2,971 per tonne, March 2020 added RM62 to RM2,940 per tonne, April 2020 gained RM64 to RM2,901 per tonne and May 2020 increased RM60 to RM2,861 per tonne.
Volume decreased to 45,016 lots from last Friday’s close of 63,239 lots while open interest declined to 286,864 from 305,303 contracts previously.
On the physical market, February South rose RM40 to RM3,030 per tonne from last Friday’s RM2,990 per tonne today. – Jan 20, 2020 Bernama