The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed higher on expectations of gains from exports as economies start reopening globally.
Singapore-based Palm Oil Analytics’ owner and co-founder Dr Sathia Varqa said the restocking from major destination markets in the coming weeks sent the prices higher today.
“As economies start reopening after the COVID-19 restriction measures, countries like India and China are resuming buying palm products,” he told Bernama.
However, Sathia said the market will remain cautious as traders await the Malaysian Palm Oil Board’s (MPOB) May 2020 palm oil production report which is scheduled for release tomorrow.
At the close, spot month June 2020 advanced RM10 to RM2,415 per tonne, July 2020 rose RM38 to RM2,412 per tonne, August 2020 gained RM40 to RM2,388 per tonne, and September 2020 increased RM36 to RM2,377 per tonne.
Volume dropped to 71,638 lots from 78,111 lots last Friday, while open interest narrowed to 264,207 contracts from 266,507 contracts previously.
On the physical market, June South rose RM28 to RM2,406 per tonne.