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By Anas Abu Hassan
KUALA LUMPUR, April 27 -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives rallied to post its biggest single-day gain and close at a 31-day high today, with the benchmark July contract hovering above the RM4,000 level.
Singapore-based Palm Oil Analytics owner and co-founder Dr Sathia Varqa said the CPO futures buying was sparked by a surge in the related soybean oil, which hit limit-up to lock in a 3.59 per cent rise on the Chicago Board of Trade.
"Palm oil was riding on the back of the gains in soybean oil today. However, demand outlook for May is gloomy from the devastating impact of COVID-19 enveloping the world’s largest buyer, India," he told Bernama.
Meanwhile, palm oil trader David Ng said the price rally was also influenced by higher demand and lower production which will reduce overall stock levels in the country.
"We locate support at RM3,950 and resistance at RM4,120," he said.
CPO futures contract for May 2021 surged RM159 to RM4,500 per tonne, June 2021 improved by RM183 to RM4,265 per tonne, July 2021 jumped RM182 to RM4,069 per tonne and August 2021 strengthen by RM152 to RM3,900 per tonne.
Total volume increased to 68,030 lots from 56,133 lots Monday while open interest was up to 273,370 contracts from 260,818 contracts previously.
The physical CPO price for May South advanced by RM140 to RM4,480 per tonne