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By Zarul Effendi Razali
KUALA LUMPUR, May 3 -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives (BMD) rebounded from last week’s losses to close sharply higher, buoyed by better palm oil export data released late last week, dealers said.
A dealer said that traders were now awaiting the forecast for April’s full-month production.
However, he said there were rising concerns of lower-than-usual output due to a labour shortage amid the fasting month of Ramadan.
On Friday last week, cargo surveyor Intertek Testing Services said exports of Malaysian palm oil products rose 10.1 per cent to 1.40 million tonnes in April from 1.27 million tonnes shipped during March.
Another dealer said that the CPO market also gained support from the latest news on Saudi Arabia becoming Malaysia’s hub for the import and distribution of palm oil and palm oil-related products into the lucrative Gulf Cooperation Council (GCC) and the Middle East and North African markets.
International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali said on Friday that the the oil-rich kingdom of Saudi Arabia would also increase the import of palm oil and related products from Malaysia.
“Malaysia will also look into the setting up of palm oil refinery and processing plants in the region,” Mohamed Azmin wrote in his Twitter account, highlighting the highly-successful outcome of his trade and investment mission to Saudi Arabia.
At the close, CPO futures contract for May 2021 surged RM192 to RM4,539 per tonne, June 2021 gained RM216 to RM4,337 per tonne, July 2021 rose RM187 to RM4,061 per tonne and August 2021 improved RM166 to RM3,862 per tonne.
Total volume eased to 53,163 lots from 54,498 lots on Friday, while open interest edged down to 258,356 contracts from 258,464 contracts previously.
The physical CPO price for May South jumped RM150 to RM4,570 per tonne.