KUALA LUMPUR (Oct 5): Crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives continued its rally to close higher, tracking gains in both soybean oil on the Chicago Board of Trade (CBOT) and the crude oil market.

“We located the support level at RM3,500 a tonne and resistance at RM3,800 a tonne,” palm oil trader David Ng said.

Meanwhile, Singapore-based Palm Oil Analytics owner and co-founder Sathia Varqa said after making a very strong start earlier in the day to over 4%, CPO futures pared most the gains towards the close locking in just less than 1% as profit taking and cautious positioning returned ahead of the Malaysian Palm Oil Board data due next week.

“Palm rose sharply at the opening spurred by impressive gains in soybean oil after crude oil surged on expectation of a deeper production cut in an already tight market from the Organisation of the Petroleum Exporting Countries and allies (OPEC+) meeting today,” he said.ADVERTISING

At the close, contracts for October 2022 and November 2022 rose RM31 each to RM3,532 per tonne and RM3,604 per tonne, respectively, December 2022 added RM28 to RM3,642 per tonne and January 2023 went up RM17 to RM3,683 per tonne.

February 2023 improved RM6 to RM3,721 per tonne and March 2023 gained RM18 to RM3,759 per tonne.

Total volume increased to 60,388 lots from 53,024 on Tuesday while open interest widened to 259,824 contracts from 251,911 previously.

Physical CPO price for October South rose RM70 to RM3,620 per tonne.

Source : The Edge Markets