CPO futures end higher in anticipation of weaker production

CPO futures end higher in anticipation of weaker production
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KUALA LUMPUR (Aug 3): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives reversed yesterday's losses to end higher today on the prospect of weaker production in the near term.

However, palm oil trader David Ng said weaker demand is an ongoing concern in the immediate future.

“Prices are likely to be volatile ahead of Bloomberg and Reuters poll due to be released in the next few days,” he told Bernama.

Ng located support at RM4,080 per tonne and resistance at RM4,250 per tonne.

At the close, the CPO futures contract for August 2021 increased RM44 to RM4,489 per tonne, September 2021 rose RM29 to RM4,341 per tonne, October 2021 bagged RM23 to RM4,143 per tonne, November 2021 went up RM14 to RM4,004 per tonne, while December 2021 and January 2022 gained RM20 each to RM3,930 and RM3,879 per tonne respectively.

Total volume advanced to 66,170 lots from 60,852 lots Monday, while open interest expanded to 256,311 contracts from 252,908 contracts previously.

The physical CPO price for August South added RM30 to RM4,550 per tonne.