CPO futures market ends higher on stronger soybean oil prices

CPO futures market ends higher on stronger soybean oil prices
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KUALA LUMPUR (Nov 25): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended higher today, backed by stronger soybean oil prices on the US Chicago Board of Trade coupled with stronger crude oil prices.

“We locate support at RM3,200 and resistance at RM3,350 per tonne,” Palm oil trader David Ng told Bernama.

Meanwhile, Singapore-based Palm Oil Analytics owner and co-founder Dr Sathia Varqa said lower exports and declining production and stocks were acting as pull and push on CPO prices for today.

At the close, the CPO futures contract for December 2020 increased RM22 to RM3,480 per tonne, January 2021 widened RM31 to RM3,351 per tonne, February 2021 was RM33 higher at RM3,285 per tonne and March 2021 rose RM34 to RM3,224 per tonne.

Total volume slipped sharply to 48,873 lots from 74,555 lots on Tuesday, while open interest dropped to 230,241 contracts from 259,047 contracts previously.

The physical CPO price for December South rose RM30 to RM3,480 per tonne.