KUALA LUMPUR, March 3 (Bernama) — The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed higher today on the continued expectation that production of the commodity in both Malaysia and Indonesia will drop.
Mumbai-based Sunvin Group commodity research head Anilkumar Bagani noted that the trading range today was limited after a spiky upside trade yesterday.
“We estimate Malaysian palm oil production to drop by 5 per cent.
“Additionally, the rally in the Chicago Board of Trade soybean oil futures and the resumption of Chinese and European Union palm oil purchase helped sentiment,” he told Bernama.
Palm oil trader David Ng also agreed that the expectation of a weaker output amid seasonal factors and stronger soybean oil prices lifted sentiment in the market.
“We locate support at RM4,100 and resistance at RM4,450,” he said.
At today’s close, the March 2023 contract rose RM48 to RM4,318 per tonne, April 2023 up RM57 to RM4,343 and May 2023 climbed RM58 to RM4,352.
The June 2023 note jumped RM61 to RM4,332 per tonne, July 2023 increased RM63 to RM4,290 and August was RM62 higher at RM4,240.
Total volume fell to 49,640 lots from 85,900 lots on Thursday while open interest was down to 169,194 contracts from 169,369 previously.
The physical CPO price for March South was up RM50 to RM4,350 per tonne.
Source: BERNAMA News Agency