KUALA LUMPUR, June 2 — The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives edged up today to notch an eight-day peak spurred by strong buying momentum fuelled by higher soybean oil prices.
Singapore-based Palm Oil Analytics owner and co-founder Dr Sathia Varqa said soybean oil prices on both the Dalian Commodity Exchange and US Chicago Board of Trade were trending higher.
“Plus, a Reuters report on lower Malaysian CPO production projection for 2021 at 18.8 million tonnes compared with previous estimates, also helped to boost sentiment,” he told Bernama.
Meanwhile, palm oil trader David Ng said sentiment on the local front was also lifted by the bullish oil prices.
Oil prices rose after the Organisation of Petroleum Exporting Countries (OPEC) and its allies agreed to gradually ease output cuts.
They also agreed to stick to their April decision to add back 2.1 million barrels per day of supply to the market between May and July.
“We locate support at RM4,000 and resistance at RM4,150 per tonne,” Ng added.
At the close, the CPO futures contract for June 2021 increased RM148 to RM4,166 per tonne, July 2021 inched up RM174 to RM4,144 per tonne, August 2021 jumped RM201 to RM4,092 per tonne, and September 2021 surged RM210 to RM4,037 per tonne.
Total volume widened to 80,371 lots from 74,113 lots yesterday, but open interest narrowed to 249,496 contracts from 254,661 contracts previously.
The physical CPO price for June South rose RM150 to RM4,200 per tonne. — Bernama
