The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended mostly higher today on better sentiment as weaker production anticipated in the coming weeks will likely support prices.
Palm oil trader David Ng said, in addition, prospects of better CPO exports ahead, following the agreement by India, the world’s largest edible oil consumer, to resume purchases of Malaysian palm oil after a four-month gap following a diplomatic row, also boosted sentiment.
“We locate support at RM2,250 and resistance at RM2,350 per tonne,” he told Bernama.
At the close, spot month June 2020 gained RM39 to RM2,373 per tonne, July 2020 rose RM28 to RM2,321 per tonne, while August 2020 and September 2020 increased RM24 each to RM2,292 and RM2,289 per tonne respectively.
Volume fell to 45,577 lots from 52,912 lots recorded yesterday, while open interest decreased to 250,651 contracts from 259,118 contracts previously.
On the physical market, June South rose RM24.50 to RM2,302 per tonne.