CPO futures close higher on supply concerns

A worker shows palm oil fruits at a factory in Sepang November 20, 2014. Malaysia’s largest palm oil producing state, Sabah, has ordered a few plantations to suspend their operations after several workers tested positive for Covid-19. — AFP pic
A worker shows palm oil fruits at a factory in Sepang November 20, 2014. Malaysia’s largest palm oil producing state, Sabah, has ordered a few plantations to suspend their operations after several workers tested positive for Covid-19. — AFP pic

KUALA LUMPUR, March 25 — The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed higher today over supply concerns, as some local plantations have suspended their operations due to the Covid-19 pandemic.

Malaysia’s largest palm oil producing state, Sabah, has ordered a few plantations to suspend their operations after several workers tested positive for Covid-19.

Singapore-based Palm Oil Analytics owner and co-founder Sathia Varqa told Bernama that the improvement in March exports and likelihood of lower production also supported the robust rise in CPO price.

According to an independent inspection company, AmSpec Agri Malaysia, exports of palm oil products for March 1-25 fell 11.7 per cent month-on-month to 866,270 tonnes from 981,073 tonnes in February.

At the close, spot month April 2020 rose by RM82 to RM2,483 per tonne, May 2020 increased by RM33 to RM2,418 per tonne, June 2020 added RM30 to RM2,383 per tonne and July 2020 gained RM29 to RM2,358 per tonne.

Volume decreased to 59,356 lots from 63,305 lots yesterday, while open interest slipped to 271,163 contracts from 279,353 contracts previously. — Bernama

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