KUALA LUMPUR, May 5 ― Crude palm oil (CPO) futures on Bursa Malaysia Derivatives ended higher today following a bullish run in the Chicago Board of Trade soybean oil market and the Dalian Commodity Exchange palm olein futures, said a dealer.
Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said CPO futures prices were also supported by the previews of a further reduction in Malaysian palm oil inventories despite a weaker export scenario.
“We estimate Malaysia palm oil April end stocks at 1.5295 million tonnes on the back of one per cent decrease in production and 21 per cent decrease in exports.
“Bloomberg and Reuters previews also show the inventories dropping to 1.53 and 1.51 million tonnes respectively.
“The market is now waiting for the Malaysian Palm Oil Association’s full-month production estimates to confirm the projections,” he told Bernama.
Meanwhile, palm oil trader David Ng said CPO futures ended the day higher as concerns over low stockpiles continue to support the market.
“We locate support at RM3,300 per tonne and resistance at RM3,800,” he said.
At today’s close of trade, the May 2023 contract rose RM51 to RM4,070 per tonne, June 2023 added RM156 to RM3,774 and July 2023 increased RM176 to RM3,601.
The August 2023 note improved RM159 to RM3,541, while September 2023 and October 2023 advanced RM158 to RM3,516 and RM3,514 respectively.
Total volume jumped to 96,403 lots from 51,170 on Wednesday, while open interest went down to 208,213 contracts from 211,332 contracts.
The physical CPO price for May South was RM50 higher at RM4,150 per tonne. ― Bernama
