KUALA LUMPUR (Sept 7): Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives resumed its upward momentum to end higher today, as concerns over output continued to lift prices higher.
Palm oil trader David Ng said raging Covid-19 cases in key plantation areas are affecting oil palm harvesting.
“The surge in Covid-19 cases in states like Sabah and Sarawak has affected some mills over there,” he told Bernama.
He located price support at RM4,250 per tonne and resistance at RM4,480 per tonne.
Singapore-based Palm Oil Analytics owner and co-founder Sathia Varqa said the weaker ringgit against the US dollar has reinforced good support for palm oil.
At 6 pm, the local note fell to 4.1545/1560 versus the greenback from Monday’s close of 4.1465/1490.
At the close, the CPO futures contract for September 2021 was up RM73 to RM4,625 a tonne, October 2021 increased RM58 to RM4,493 a tonne, November 2021 rose RM59 to RM4,390 and December 2021 recovered RM61 to RM4,299 a tonne.
Meanwhile, January 2022 improved by RM60 to RM4,219 a tonne and February 2022 firmed RM59 to RM4,144 a tonne.
Total volume weakened to 44,237 lots from Monday’s 50,726 lots while open interest lowered to 235,131 contracts from 240,827 contracts previously.
The physical CPO price for September South improved by RM30 to RM4,650 a tonne.