CPO FUTURES ENDS HIGHER AMID BULLISH RECOVERY IN CBOT SOYBEAN OIL FUTURES

By Fatin Umairah Abdul Hamid

KUALA LUMPUR, May 7 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended higher for the second consecutive day on Tuesday following a bullish recovery in the Chicago Board of Trade (CBOT) soybean oil futures overnight and in Asian hours, as well as Chinese vegetable oil futures in Asian hours, said a dealer.

Mumbai-based Sunvin Group commodity research head Anilkumar Bagani told Bernama that the bullish sentiments were also supported by sharply lower South Peninsular Mills palm oil production data on the May 1-5 period, where the Southern Peninsula Palm Oil Millers Association (SPPOMA) data showed a decline of around 24 per cent on a month-on-month basis.

Agreeing with Anilkumar, palm oil trader David Ng said the CPO prices were higher due to positive gains in CBOT.

He said positive gains in the Chicago soybean market due to bad weather in South American crops are seen spilling over to palm oil prices today.

“We see prices well supported above RM3,800 per tonne with resistance seen at RM4,000,” said Ng.

At the close, the spot months of May 2024 and June 2024 rose RM51 to RM3,960 a tonne and RM3,944 a tonne, respectively, and July 2024 added RM68 to RM3,930 a tonne.

August 2024 saw a RM76 increase to RM3,926 a tonne, September 2024 was RM79 higher at RM3,925 a tonne, and October 2024 advanced RM75 to RM3,925 a tonne.

Total volume surged to 70,166 lots from Monday’s 39,361 lots, while open interest dropped to 221,326 contracts from 227,559 contracts previously. 

The physical CPO price for May South was RM40 higher at RM3,980 a tonne.

-- BERNAMA