CPO futures end higher on improved export data

-A +A

KUALA LUMPUR (June 25): Crude palm oil (CPO) futures prices on Malaysia Derivatives Exchange ended higher on the back of improved export data, gains in crude oil prices and a weaker ringgit against the US dollar.

Cargo surveyor Intertek Testing Services's report showed that exports of Malaysian palm oil products during June 1-25 inched up three per cent to 1.13 million tonnes, against 1.09 million tonnes a month ago.

Phillip Futures Sdn Bhd Derivative Product Specialist, David Ng, told Bernama that the futures contracts were traded higher early in the day, due to concerns over higher inventories in the coming months and weaker soybean oil performance during Asian hours.

Ng said September CPO contract prices are likely to extend their gains towards the RM2,535 to RM2,570 levels, while on the downside, RM2,465 and RM2,435 remain the near-term supports.

At the close, July 2014 rose RM6 to RM2,497 per tonne, August 2014 went up RM1 to RM2,491 per tonne, September 2014 added RM1 to RM2,483 per tonne, while October 2014 gained RM1 to RM2,481 per tonne.

Volume widened to 36,373 lots from 31,076 lots on Tuesday, while open interest increased to 223,180 contracts, from 217,811 contracts previously.

On the physical market, July South was unchanged at RM2,520 per tonne from yesterday.