Strong Demand From India In April Lifts Cpo Futures Higher At Close

By Fatin Umairah Abdul Hamid

KUALA LUMPUR, May 2 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended higher on Thursday due to strong demand from India, which rose by 41 per cent to an estimated 682,000 tonnes in April, the highest level in three months, said a dealer. 

Palm oil trader David Ng said India is the world’s biggest importer of vegetable oils, and higher purchases in April are probably due to seasonally stronger demand and lower palm oil prices.

“The lower-than-expected pace of production also supported the market. 

“We see support at RM3,750 a tonne and resistance at RM3,900 a tonne,” he told Bernama.

Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said CPO prices were seen recovering in the early trade session after the Labour Day holiday on Wednesday due to bargain-buying activities.

“Malaysian palm oil export data for April showed a month-on-month reduction, with Intertek Testing Services (ITS) estimating it at 1.21 million tonnes, down by 8.97 per cent, and AmSpec Agri Malaysia at 1.14 million tonnes, down by 11.46 per cent from their respective export estimates for March.

“Market is now waiting for April's palm oil production estimates from UOB Kay Hian and the Malaysian Palm Oil Association (MPOA) ahead of the Malaysian Palm Oil Board (MPOB) April supply and demand previews from agencies,” he said.

At the close, the spot month of May 2024 added RM33 to RM3,895 a tonne, June 2024 gained RM27 to RM3,874 a tonne, July 2024 rose RM28 to RM3,846 a tonne, while August 2024 and September 2024 bagged RM30 to RM3,831 a tonne and RM3,824 a tonne, respectively, and October 2024 increased by RM26 to RM3,830 a tonne.

Total volume tumbled to 48,820 lots from Tuesday’s 84,566 lots, while open interest fell to 238,389 contracts from 243,746 contracts previously.

The physical CPO price for May South was RM30 higher at RM3,950 a tonne.

-- BERNAMA