KUALA LUMPUR (Feb 13): Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed higher yesterday on the back of lower production and inventories, as well as better exports, said a dealer.

Statistics from the Malaysian Palm Oil Board (MPOB) released yesterday showed that Malaysia's palm oil exports in January 2018 rose 6.01 per cent to 1.51 million tonnes from 1.43 million tonnes in December 2017.

Phillip Futures Sdn Bhd Derivative Dealer David Ng said the traders reckoned the positive momentum might continue moving into February.

The momentum will continue as declining production supports CPO prices in the near term, he told Bernama.

In addition, cargo surveyor Intertek Testing Services reported that Malaysia's palm oil products exports in the Feb 1-10 period increased 14.7 per cent to 412,207 tonnes, up from 359,346 tonnes shipped during the same period in January.

The support level was located at RM2,450 with immediate resistance at RM2,580 a tonne.

At the close, February 2018 increased RM55 to RM2,550 per tonne, March 2018 gained RM31 to RM2,550 per tonne, April 2018 appreciated RM29 to RM2,543 per tonne, and May 2018 improved RM28 to RM2,542 per tonne.

Turnover, however, decreased to 38,579 lots from 48,195 lots last Friday, with open interest slipped to 277,684 contracts from 286,520 contracts previously.

On the physical market, February South was RM35 better at RM2,550 per tonne.