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Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives turned higher on Wednesday, rebounding from Tuesday’s losses, and tracking a bullish recovery in the Chinese vegetable oil futures, said a dealer.
Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said despite the quiet buying momentum from other markets apart from India, the origin markets (Malaysia and Indonesia) are still banking on a flurry of buying from India due to lower stocks.
“Meanwhile, Malaysian and Indonesian palm oil production is expected to show double-digit recovery this month and exports are also likely to show double-digit growth,” he told Bernama.
Concurring with Anilkumar, palm oil trader David Ng said the higher export estimates have lifted the sentiment in the palm oil market.
“Stronger crude oil and bean oil prices also supported sentiment. We see support at RM4,200 a tonne and resistance at RM4,350,” he said.
At the close, spot month April 2024 contract rose RM67 to RM4,364 a tonne, May 2024 jumped RM82 to RM4,329 a tonne and June 2024 went up RM71 to RM4,272 a tonne.
July 2024 contract appreciated RM58 to RM4,185 a tonne, August 2024 bagged RM47 to RM4,094 a tonne and September 2024 increased RM37 to RM4,023 a tonne.
Total volume widened to 101,748 lots from 99,194 on Tuesday while open interest decreased to 291,127 contracts from 294,457 previously.
Physical CPO price for April South rose RM50 to RM4,400 a tonne from RM4,350 a tonne on Tuesday.
Source: The Edge Malaysia
