By Siti Noor Afera Abu
KUALA LUMPUR, July 22 -- The crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives ended higher today, tracking the surge in Zhengzhou Commodity Exchange's rapeseed oil futures, said a dealer.
Singapore-based Palm Oil Analytics’ owner and co-founder Dr Sathia Varqa said the rally in the Zhengzhou exchange had pushed up prices, spurred by lower imports of the oilseed from Canada and tight supplies.
“The diplomatic spat between China and Australia as well as Canada raised supply worries,” he told Bernama.
A report said that China's rapeseed oil imports would be affected on the continued tension between China and Canada, while China's relations with another rapeseed producer, Australia, did not appear optimistic.
Meanwhile, the Council of Palm Oil Producing Countries (CPOPC) said in a statement today that the palm oil industry might see a full recovery in the fourth quarter of this year if the COVID-19 pandemic was managed and contained.
The council also believed that there was a possibility of a rebound in the market given the ultra-loose monetary policies of many central bankers and the government’s stimulus package.
“CPOPC remains optimistic that palm oil is heading for a price recovery in the second half of 2020 due to improving global consumption and dwindling production after the COVID-19 outbreak,” it said.
According to cargo surveyor Societe Generale de Surveillance, exports of Malaysian palm oil products for July 1-20 fell 10.5 per cent to 1,089,021 tonnes from 1,217,356 tonnes shipped during Jun 1-20.
At the close, August 2020 added RM12 to RM2,745 per tonne, September 2020 rose RM21 to RM2,702 per tonne, October 2020 gained RM15 to RM2,656 per tonne and November 2020 was up RM10 at RM2,621 per tonne.
Total volume increased to 57,701 lots from 54,711 lots yesterday, while open interest edged up to 247,340 contracts from 247,172 contracts.
On the physical market, August South increased RM20 to RM2,750 per tonne.
Malaysia National News Agency
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