KUALA LUMPUR (March 31): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives reversed yesterday’s losses to end higher on Wednesday, propelled by a solid rise in palm oil exports for March 2021 and stronger soybean oil performance on the US Chicago Board of Trade (CBOT).
Singapore-based Palm Oil Analytics’ owner and co-founder Dr Sathia Varqa said bargain buying also pushed the CPO futures higher today.
“Data released by cargo surveyor Intertek Testing Services today showed that Malaysia’s palm oil products export stood at 1.27 million tonnes in March 2021, up 26.82% from 1 million tonnes in February 2021,” he told Bernama.
Palm oil trader David Ng sees the firm palm oil exports as a positive price factor in the short term.
“We locate support at RM3,550 a tonne and resistance at RM3,750 a tonne,” he said.
Meanwhile, Sathia said market traders were closely monitoring the United States Department of Agriculture’s reports scheduled to be released later today.
“The reports will determine the direction of soy complex,” he said.
At the close today, the CPO futures contract for April 2021 increased RM42 to RM4,061 per tonne, May 2021 added RM38 to RM3,825 per tonne, June 2021 rose RM40 to RM3,612 per tonne, and July 2021 was RM39 higher at RM3,472 per tonne.
Total volume decreased to 62,888 lots from 84,396 lots on Tuesday, while open interest declined to 247,463 contracts from 271,188 contracts previously.
The physical CPO price for April South rose RM10 to RM4,060 per tonne.
Source : The Edge Markets