KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives continued to rally for a third consecutive day today, with the benchmark March 2021 closing at a fresh high of RM3,877 per tonne.

Palm oil trader David Ng said the CPO futures breached above RM3,800 per tonne, the highest level recorded since February 2011, underpinned by an outlook of lower stocks in the country, judging from the Southern Peninsula Palm Oil Millers’ Association’s (SPPOMA) data.

Based on the SPPOMA data, he said the local CPO production fell 66.57 per cent for the Jan 1-5,2021 period compared with figures for Dec 1-5,2020 period.

The higher soybean prices on the Chicago Board of Trade (CBOT) also supported the market in the near term, he added.

“We locate support at RM3,850 and resistance at RM3,950 per tonne, ” Ng told Bernama.

At the close, the CPO futures contract for January 2021 jumped RM74 to RM4,040 per tonne, February 2021 was RM111 higher at RM4,017 per tonne, March 2021 increased RM122 to RM3,877 per tonne, and April 2021 added RM118 to RM3,733 per tonne.

Total volume increased to 83,414 lots from 61,010 lots on Tuesday, while open interest rose to 245,301 contracts from 225,778 contracts previously.

The physical CPO price for January South added RM70 to RM4,040 per tonne. – Bernama

Source : The Star