KUALA LUMPUR, Malaysia (July 1): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed higher for the third day in a row, boosted by the prospect of stronger exports after India dropped import duties on CPO to 10% and lifted restrictions on RBD palm olein. Market sentiment was further bolstered, according to palm oil dealer David Ng, by expectations of lower production levels in June, which might cut the country’s overall inventory.
He told Bernama, “We place support at RM3,650 per tonne and resistance at RM3,850 per tonne.”
Meanwhile, Dr Sathia Varqa, the owner and co-founder of Singapore-based Palm Oil Analytics, said CPO futures traded higher all day on all contract months, with the benchmark month comfortably pushing above 100 points and finishing at a three-week high.
“The futures were also up on the back of substantial increases in soybeans and oil following a positive United States Department of Agriculture (USDA) report that revealed lower than expected soybean planting acreage for the forthcoming marketing year (raising soybean/oil prices),” he added.
The CPO futures contract for July 2021 rose RM60 to RM3,842 per tonne at the close, RM101 to RM3,793 per tonne in August, RM111 to RM3,710 per tonne in September, and RM109 to RM3,626 per tonne in October.
Total volume fell to 59,307 lots on Wednesday from 90,419 lots the day before, while open interest fell to 248,408 contracts from 276,998 contracts the day before.
July South’s physical CPO price increased by RM70 to RM3,900 per tonne./n
