KUALA LUMPUR (April 7): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives continued its rally to end higher for the third consecutive day, boosted by stronger soybean oil performance on the US Chicago Board of Trade (CBOT) and firmer crude oil prices.
The overnight CBOT soybean oil futures hit a one-week high on recovery in the crude oil market.
"We locate support at RM3,700 per tonne and resistance at RM3,880 per tonne," palm oil trader David Ng told Bernama.
Oil prices edged higher on prospects of a stronger global economic growth amid increased Covid-19 vaccinations and a fall in US oil inventories.
Singapore-based Palm Oil Analytics owner and co-founder Dr Sathia Varqa said CPO futures showed strength by maintaining its positive run, contrary to the strong rise in March production as reflected in the Malaysian Palm Oil Association (MPOA) March data.
"According to the MPOA, overall Malaysia output was up 30.13% while the expectation was 21.3% to 26% rise over February," he said.
At the close, CPO futures contract for April 2021 went up RM71 to RM4,282 per tonne, May 2021 was RM42 higher at RM4,080 per tonne, June 2021 added RM43 to RM3,845 per tonne, and July 2021 increased RM36 to RM3,666 per tonne.
However, total volume declined to 45,729 lots from 58,228 lots on Tuesday, while open interest dropped to 244,357 contracts from 257,146 contracts previously.
The physical CPO price for April South added RM60 to RM4,280 per tonne.