KUALA LUMPUR, Feb 23 (Bernama) — The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives rallied above RM4,200 per tonne for the May benchmark contract, said Palm oil trader David Ng.
He said concerns over weak production continue to lift sentiment higher.
“Weak output will lower the overall stock level in the country. We locate the support level at RM4,000 and resistance level at RM4,500 a tonne,” he told Bernama.
Mumbai-based Sunvin Group commodity research head Anilkumar Bagani shared that UOB Kay Hian estimated Malaysian palm oil production during the period of Feb 1-20 to be down by three per cent to seven per cent, while Southern Malaysian Palm Fruit Manufacturers Association (SPPOMA) has estimated South Peninsular mills palm oil production during Feb 1-20 period to be down by 4.17 per cent.
Meanwhile, Fastmarkets senior analyst Dr Sathia Varqa said CPO futures showed strong stamina across the contract months.
“The contracts rose by over two per cent in the first five months, reflecting the persistent idea of tight export supply from the world’s largest producer Indonesia to be filled by Malaysia,” he said.
At today’s close, the March 2023 contract was up RM91 to RM4,190 per tonne, April 2023 increased RM90 to RM4,229, and May rose RM89 to RM4,235.
Meanwhile, June 2023 added RM88 to RM4,212 per tonne, July 2023 edged up RM82 to RM4,173, and August improved RM68 to RM4,131.
Total volume declined to 59,724 lots from 60,727 lots on Wednesday, while open interest rose to 166,605 contracts from 163,164 contracts previously.
The physical CPO price for March South was RM100 higher at RM4,250 per tonne.
Source: BERNAMA News Agency