COVID–19 NEWS   COVID : 30.4 pct of children in Malaysia fully vaccinated | N Korea reports one additional death amid COVID-19 outbreak | S Korea to resume issuing short-term travel visas, e-visas next month | Biden's daughter tests positive for COVID-19 | MPN recommends govt to come up with new initiatives to help tourism sector | 
BUSINESS

CPO futures hit fresh all-time high on expectation of weaker output

28/01/2022 11:04 PM

By Durratul Ain Ahmad Fuad

KUALA LUMPUR, Jan 28 -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives hit a fresh all-time high today on prospect of weaker output as well as stronger soybean oil performance on the US Chicago Board of Trade (CBOT), palm oil trader David Ng said.

The benchmark palm oil contract for April 2022 jumped RM184 to RM5,628 a tonne.

Ng said Indonesia’s restriction on CPO exports also continued to lift sentiment. 

“We locate support at RM5,400 per tonne and resistance at RM5,800 per tonne,” he told Bernama.

Meanwhile, Singapore-based Palm Oil Analytics owner and co-founder Dr Sathia Varqa said CPO traded on further record high prices driven by Indonesia’s export policy. 

“Prices hit record high today. I do not think there are any new fundamentals to support the rise to a new record high except for speculation. The market still uses this opportunity to create a new high,” he said. 

Yesterday, Indonesia imposed a rule starting on Jan 27 for a mandatory portion of palm oil to be sold domestically at a maximum price of 9,300 rupiah per kg for crude palm oil and 10,300 rupiah per kg for olein, its Trade Minister Muhammad Lutfi said. 

The so-called Domestic Market Obligation (DMO) will be applied to all cooking oil exporters and they will be required to sell 20 per cent of their planned export to the domestic market, he said.

At the close, the CPO futures contract for February 2022 gained RM190 to RM5,803 a tonne, March 2022 increased by RM177 to RM5,790 a tonne, April 2022 rose RM184 to RM5,628 a tonne, May 2022 added RM181 to RM5,441 a tonne, June 2022 surged RM177 to RM5,266 a tonne and July 2022 climbed RM175 to RM5,106 a tonne.

Total volume improved to 75,298 lots from 73,815 lots on Thursday, while open interest fell to 281,952 contracts from 285,416 contracts previously. 

The physical CPO price for February South was up by RM160 to RM5,800 a tonne from RM5,640 a tonne on Thursday. 

-- BERNAMA


Bernama is the trusted source of reliable real-time comprehensive and accurate news for both the public and media practitioners. Our news is published at www.bernama.com ; BERNAMA TV on: Astro Channel 502, unifi TV Channel 631, MYTV Channel 121 IFLIX; and Bernama Radio broadcasting locally on FM93.9 in Klang Valley, Johor (FM107.5), Kota Kinabalu (FM107.9) and Kuching (FM100.9).

Follow us on social media :
Facebook : @bernamaofficial, @bernamatv, @bernamaradio
Twitter : @bernama.com, @BernamaTV, @bernamaradio
Instagram : @bernamaofficial, @bernamatvofficial, @bernamaradioofficial
TikTok : @bernamaofficial

© 2022 BERNAMA   • Disclaimer   • Privacy Policy   • Security Policy