Rally in soyoil market propels CPO futures to strong close

Rally in soyoil market propels CPO futures to strong close
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KUALA LUMPUR (Jan 27): Bargain buying and rally in the soyoil market propelled the crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives to its best single day rise in 15 days.

Singapore-based Palm Oil Analytics owner and co-founder Dr Sathia Varqa said soyoil prices on both the Dalian Commodity Exchange and Chicago Board of Trade were on strong uptrends.

Meanwhile, palm oil trader David Ng said the gains in soyoil market may be due to strong demand from China as well as port strikes in Brazil.

“Higher soybean oil prices are making CPO more competitive in the export market.

“We locate support at RM3,280 and resistance at RM3,450,” he told Bernama.

At the close, the CPO futures contract for February 2021 gained RM169 to RM3,775 per tonne, March 2021 went up RM128 to RM3,552 per tonne, April 2021 added RM122 to RM3,388 per tonne, and May 2021 was RM119 higher at RM3,289 per tonne.

Total volume rose to 76,265 lots from 74,329 lots on Tuesday, while open interest widened to 250,426 contracts from 245,155 contracts previously.

The physical CPO price for February South increased RM150 to RM3,800 per tonne.