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27 March 2023. Monday
KUALA LUMPUR (March 27): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives snapped a three-day losing streak to close higher on Monday (March 27), on expectation of weaker output and lower stockpile in the country,” said a dealer.
Palm oil trader David Ng told Bernama on Monday that the expectations were seen to be supporting prices in the near term.
“Hence, we locate support at RM3,500 and resistance at RM3,850 a tonne,” he said.
The Malaysian Palm Oil Association (MPOA) has forecast local palm oil production to decrease 6% for the March 1-20 period on a month-on-month basis, while UOB Kay Hian has projected a decline of 5% to 9%.
At the close, spot month April 2023 added RM135 to RM3,884 per tonne, May 2023 increased RM91 to RM3,694 per tonne, and June 2023 rose RM65 to RM3,576 per tonne.
July 2023 futures widened RM54 to RM3,528 per tonne, August 2023 climbed RM56 to RM3,511, and September 2023 rose RM52 to RM3,501 per tonne.
Total volume slid to 67,629 lots from 113,211 lots on Friday, while open interest expanded to 256,729 contracts, from 193,764 contracts previously.
The physical CPO price for April South was higher by RM100 at RM4,050 per tonne.
