KUALA LUMPUR: Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives ended higher for the eight consecutive day yesterday on anticipation of lower supply.

Phillip Futures Sdn Bhd derivatives dealer David Ng said worsening weather conditions in key growing areas in Malaysia had disrupted crude palm oil production.

“Production is expected to decline by between 12 to 16 per cent month-on-month and might alleviate the stockpile in the country. This will bolster prices going forward,” he said.

Ng said the support level was located at RM2,230 a tonne with immediate resistance at RM2,320 a tonne.

January 2015 rose RM48 to RM2,298 a tonne, February 2015 increased RM42 to RM2,294 a tonne, March 2015 gained RM36 to RM2,286 a tonne and April 2015 added RM30 to RM2,279 a tonne.

Volume increased to 39,627 lots from the 32,884 lots recorded last Friday, while open interest rose to 214,483 contracts from 208,166 contracts.

On the physical market, January South stood at RM2,305 a tonne up from RM2,260 previously. Bernama

Source : New Straits Times