CPO Futures Extend Gains On Weaker Output Growth

By Nur Athirah Mohd Shaharuddin

KUALA LUMPUR, Feb 10 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives continued to extend its gains for four consecutive days driven by weaker-than-expected output growth, a dealer said.

Palm oil trader David Ng said the market ended higher today as the Malaysian Palm Oil Board (MPOB) report posted another month of declining stock levels in Malaysia. 

“We expect the CPO price to find support at RM4,500 per tonne and resistance at RM4,700 per tonne,” he told Bernama.

According to MPOB, Malaysia’s palm oil production for January 2025 slid by 16.80 per cent, or 249,864 tonnes, to 1.24 million tonnes from 1.49 million tonnes in the preceding month.

Meanwhile, the board noted that Malaysia’s palm oil exports in January 2025 slipped 12.94 per cent to 1.17 million tonnes from 1.34 million tonnes in December 2024.

At the close, the February 2025 contract soared RM47 to RM4,828 per tonne, March 2025 rose RM88 to RM4,689 per tonne, and April 2025 climbed RM89 to RM4,593 per tonne.

May 2025 surged RM96 to RM4,505 per tonne, June 2025 increased RM82 to RM4,408 per tonne, and July 2025 put on RM70 to RM4,331 per tonne.

Trading volume leapt to 106,188 lots from 100,050 lots on Friday, while open interest fell to 226,292 contracts from 227,401 previously.

The physical CPO price for February South rose RM30 to RM4,850 per tonne.

Meanwhile, Bursa Malaysia Bhd noted that the exchange and its subsidiaries will be closed on Tuesday, Feb 11, 2025, in conjunction with the Thaipusam public holiday.

The exchange said operations will resume on Wednesday, Feb 12, 2025.

-- BERNAMA