Strong palm oil exports push CPO futures higher at close

Strong palm oil exports push CPO futures higher at close

KUALA LUMPUR (Feb 10): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed higher today on the back of stronger exports, a trader said.

According to cargo surveyor Intertek Testing Services’ data for Feb 1-10, exports of Malaysian palm oil products rose 53.94% to 400,375 tonnes from 260,080 tonnes shipped during the same period in January.

“Additionally, the higher futures contract was also supported by strong gains in the overnight Chicago Board of Trade soybean oil market,” palm oil trader David Ng said.

Earlier today, industrial regulator Malaysian Palm Oil Board announced that the country’s CPO stocks rose 9.76% to 640,781 tonnes in January 2021 from 583,811 tonnes in December 2020.

Overall palm oil stocks increased by 4.68% month-on-month to 1.32 million tonnes from 1.26 million tonnes previously, while production slid 15.52% to 1.12 million tonnes versus 1.33 million tonnes in December 2020.

At the close, the CPO futures contract for spot month February 2021 gained RM34 to RM3,955 per tonne, March 2021 rose RM72 to RM3,890 per tonne, April 2021 increased RM57 to RM3,629 per tonne and May 2021 was RM47 higher at RM3,425 per tonne.  

Total volume appreciated to 74,347 lots from 58,471 lots on Tuesday, while open interest advanced to 266,284 contracts from 250,167 contracts previously.  

The physical CPO price for February South fell RM10 to RM3,970 per tonne.

Source : The Edge Markets

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