KUALA LUMPUR (Nov 11): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed higher for a third consecutive session, hitting its highest level in eight-and-a-half years, following upbeat sentiment in anticipation of lower production and depleting stockpile in the country.
The third-month benchmark CPO futures for Jan 2021 was traded at RM3,346 a tonne today.
Singapore-based Palm Oil Analytics owner and co-founder Dr Sathia Varqa said the better performance was also backed by a stronger soybean oil price on the US Chicago Board of Trade and China's Dalian Commodity Exchange.
“Market players are also optimistic over a potential COVID-19 vaccine announced recently,” he told Bernama.
Furthermore, citing the Southern Peninsular Palm Oil Millers' Association (SPPOMA) data, he said that production was still low at -11.88 per cent for the Nov 1-10 period and this situation would continue to support the CPO prices.
At the close, the CPO futures contract for November 2020 and December 2020 increased RM50 each to RM3,494 per tonne and RM3,456 per tonne, respectively.
Meanwhile, January 2021 added RM90 to RM3,346 per tonne while February 2021 perked up RM97 to RM3,267 per tonne.
Total volume rose to 78,038 lots from 58,736 lots on Tuesday while open interest inched up to 282,968 contracts from 265,454 previously.
The physical CPO price for November South rose RM20 to RM3,470 per tonne.