CPO Futures Hit Highest Level Since March

Last update: 13/09/2017

By Siti Noor Afera Abu and Niam Seet Wei

KUALA LUMPUR, Sept 13 (Bernama) -- Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives extended yesterday's gains to close at its highest level since March 8, 2017.

In a note today, Maybank Investment Bank Research said investors were concerned that output for the fourth quarter of this year could potentially disappoint as post-El Nino recovery might only fully materialise in 2018.

Echoing Maybank's view, Phillip Futures Sdn Bhd Dealer, David Ng said market players remained worried that production might continue to trend lower in the coming months, judging from the Malaysian Palm Oil Board's (MPOB) data released on Monday.

Meanwhile, he said the CPO prices were also driven by demand from China where the country was expected to stock up ahead of the winter season.

"This will subsequently boost exports as China is Malaysia's top CPO importer.....