KUALA LUMPUR, Malaysia (July 2): Today, the Crude Palm Oil (CPO) futures contract on Bursa Malaysia Derivatives continued to rise for the fourth day in a row, driven by expectations of increased demand, particularly from India. “After India decreased its palm oil import duty, CPO finished higher on the anticipation of more exports in the coming weeks.”
Palm oil trader David Ng stated, “Expectations of a reduced output is also helping the near term mood.”
The support level is now at RM3,700 per tonne, while the resistance level is at RM3,880 per tonne, according to him.
From June 30 through September 30, 2021, the Indian government has decreased the import duty on CPO from 15% to 10%.
The CPO futures contract for July 2021 jumped RM56 to RM3,898 per tonne at the close of the week, while August 2021 gained RM71 to RM3,864 per tonne, September 2021 gained RM79 to RM3,789 per tonne, and October 2021 gained RM87 to RM3,713 per tonne.
Total volume fell to 49,807 lots from 59,307 lots the day before, while open interest fell to 233,852 contracts from 248,408 contracts the day before.
July South’s physical CPO price increased by RM80 to RM3,980 per tonne./n
