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By Nurul Jannah Kamaruddin
KUALA LUMPUR, April 6 -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended higher for the second consecutive day, as declining production shrugged off concerns over rising stocks.
Singapore-based Palm Oil Analytics owner and co-founder Dr Sathia Varqa said data from the Southern Peninsula Palm Oil Millers' Association (SPPOMA) showed that output had dropped six per cent for the April 1- 5 period versus the March 1-5 period.
"The first two contract months, April 2021 and May 2021 finished above RM4,200 and RM4,000 respectively, signalling tight immediate month delivery," he told Bernama.
Meanwhile, palm oil trader David Ng said the market had moved in tandem with the bullish overnight soybean prices.
Ng said Sri Lanka's move to ban palm oil imports from Malaysia will have no impact on the CPO price movement due to their lower imports.
It is estimated that the country imports about 200,000 tonnes of palm oil from Malaysia and Indonesia per annum.
Minister of Plantation Industries and Commodities Dr Mohd Khairuddin Aman Razali said the ban imposed by Sri Lanka was a discrimination against the country's product, even though the Malaysian palm oil is of the highest quality and had achieved 90 per cent Malaysian Sustainable Palm Oil (MSPO) certification.
“The world has a population of over seven billion people and we are confident our palm oil will be accepted worldwide.
“If one party is not interested, many more are interested, and most importantly, we give the best quality in terms of the country's palm oil production," he said on Tuesday.
At the close, CPO futures contract for April 2021 went up RM47 to RM4,211 per tonne, May 2021 was RM71 higher at RM4,038 per tonne, June 2021 added RM63 to RM3,802 per tonne and July 2021 increased RM60 to RM3,630 per tonne.
Total volume surged to 58,228 lots from 38,005 lots on Monday, while open interest improved to 257,146 contracts from 237,123 contracts previously.
The physical CPO price for April South added RM50 to RM4,220 per tonne.