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By Zufazlin Baharuddin
KUALA LUMPUR, Feb 16 -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed mixed today on concerns over production.
According to data released by the Southern Peninsula Palm Oil Millers’ Association today, CPO production for Feb 1-15 increased 9.42 per cent compared with the same period in January, which is lower than market expectation.
Palm oil trader David Ng said the market expected a higher percentage increase in CPO production, which would lead to higher stocks.
“The market players are looking at around 13 per cent increase in CPO production,” he told Bernama.
Meanwhile Singapore-based Palm Oil Analytics’ owner and co-founder Dr Sathia Varqa said the slowdown in production was due to the shutdown of mills for the Chinese New Year break.
At the close, the CPO futures contract for March 2021 decreased RM1 to RM3,938 per tonne, April 2021 surged RM10 to RM3,725 per tonne, May 2021 added RM11 to RM3,535 per tonne, and June 2021 lost RM3 to RM3,371 per tonne.
Total volume firmed to 73,879 lots from 53,427 lots on Monday, while open interest shed to 194,473 contracts from 253,201 contracts previously.
The physical CPO price for February South added RM10 to RM3,970 per tonne.