KUALA LUMPUR (May 5): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives (BMD) closed mostly higher today, lifted by positive sentiment over strong export demand, palm oil trader David Ng said.
This was amid worries over the prospects of higher output in the coming weeks, which was expected to drive the commodity's price sideways, he said.
"For the time being, we locate support at RM3,950 per tonne and resistance at RM4,150 per tonne," he told Bernama.
Meanwhile, Singapore-based Palm Oil Analytics owner and co-founder Dr Sathia Varqa said CPO futures was lacking in direction after contradictory estimates emerged on April’s end-month stocks between Bloomberg and Reuters.
“Bloomberg pegged end-month stocks rising to a five-month high on higher production but Reuters assessed stocks staying unchanged,” he said.
He said China’s Dalian Commodity Exchange closure did not help in offering any firm direction to the CPO market. Dalian is closed for Labour Day and will re-open tomorrow.
“Malaysia’s export in the first five days of May was up 37.58% but is likely to taper off in the second half of the month,” he added.
Malaysia’s crude palm oil (CPO) price stood at RM4,525.50 per tonne on May 4 — the highest price in the palm oil industry’s history and the seventh highest this year — surpassing the previous peak of RM4,502 per tonne recorded just the day before, the Malaysian Palm Oil Board (MPOB) said.
At the close, CPO futures contract for May 2021 increased RM4 to RM4,598 per tonne, June 2021 added RM4 to RM4,311 per tonne, July 2021 rose RM2 to RM4,044 per tonne, and August 2021 decreased RM4 to RM3,850 per tonne.
Total volume eased to 39,651 lots from 47,953 lots on Tuesday, while open interest edged down to 246,901 contracts from 254,965 contracts previously.
The physical CPO price for May South added RM10 to RM4,610 per tonne.