KUALA LUMPUR (Sept 6): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended firmer today, supported by expectations of weaker production in the coming weeks that may reduce the country's overall stock level.
Citing data from the Southern Peninsula Palm Oil Millers' Association (SPPOMA), palm oil trader David Ng said local CPO production fell 6.65 percent month-on-month (m-o-m) in the first five days of September 2019, offsetting the 3.07 percent m-o-m growth for Aug 1-31 shown by the Malaysian Palm Oil Association's data.
However, Ng said the stronger ringgit which traded at 4.1780 against the US dollar from 4.1880 yesterday had limited the gains on the local CPO prices.
"Hence, we locate support at RM2,150 per tonne and resistance at RM2,250 per tonne," he told Bernama.
At the closing bell, CPO futures contract for September 2019 and October 2019 jumped RM26 each to RM2,116 and RM2,168 per tonne respectively, November 2019 bagged RM19 to RM2,201 per tonne and December 2019 was RM17 firmer at RM2,238 per tonne.
Volume, however, fell to 48,187 lots from 57,657 lots on Thursday, and open interest weakened to 216,532 contracts versus 226,092 contracts yesterday.
On the physical market, September South was RM10 higher at RM2,140 per tonne.