KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives (BMD) ended higher today as a bullish recovery from last week continued, said a dealer.
Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said worries over Indonesia’s palm oil export restrictions until Ramadan ends, lower than expected palm oil production recovery in both Indonesia and Malaysia as well as Indonesia’s increased biodiesel mandate have attributed to the short covering in CPO futures.
“The bullish recovery last week in the Chicago Board of Trade soybean oil futures and the turnaround in Dalian Commodity Exchange’s refined, bleached, and deodorised palm olein futures have also helped sentiment,” he told Bernama.
Palm oil trader David Ng said higher export estimates as reported by cargo surveyors continued to lift sentiment higher.
“Prices have breached RM4,200 and looking for the next resistance at RM4,350 while support is seen at RM4,000 per tonne,” he said.
Singapore-based Palm Oil Analytics owner and co-founder Sathia Varqa said that CPO futures headed to a seven-week high as trading sentiment continued to be bullishly driven by the recovery in Malaysia’s exports, tight export supply from Indonesia “as we head nearer to Ramadan seasonal buying spree and on higher related soybean oil trade on Dalian.”
Data compiled by cargo surveyor Intertek Testing Services revealed that exports of palm oil for the Feb 1-20, 2023 period rose 33.06 per cent to 784,105 tonnes from 589,308 tonnes recorded in the same period a month ago.
Cargo surveyor Amspec said exports were up 27.70 per cent to 723,482 tonnes against 566,561 tonnes previously.
At the close, the March 2023 contract was up RM26 to RM4,121 per tonne, April 2023 increased RM34 to RM4,162, and May rose RM36 to RM4,167.
Meanwhile, June 2023 added RM39 to RM4,148 per tonne, July 2023 edged up RM37 to RM4,120 and August improved RM32 to RM4,086.
Total volume declined to 50,555 lots from 62,494 lots last Friday, while open interest dropped to 159,005 contracts from 159,937 contracts previously.
The physical CPO price for March South was RM80 lower at RM4,160 per tonne.
–BERNAMA
Source : NST
