KUALA LUMPUR: Crude palm oil (CPO) futures contract Bursa Malaysia Derivatives rebounded from its recent sell down amid firmer sentiment for the commodity.
The contract ended higher on the back of stronger fundamentals despite higher inventories.
Local research houses were positive over prices in the mid to long term due to sustainable demand seen from the Indonesian biodiesel industry and stable food demand.
Chartwise, a trader said support level was expected around the RM2,600 level and immediate resistance at RM2,650.
Active month contract for April 2014 ended RM10 higher at RM2,670 a tonne, May 2014 finished RM26 better at RM2,667 a tonne, June 2014 improved RM20 to RM2,635 a tonne while July 2014 gained RM21 to RM2,618 a tonne.
Turnover eased to 34,738 lots from 38,792 lots last Friday while open interest dwindled to 217,550 contracts from Friday’s 222,970 contracts.
Meanwhile, on the physical market, April South appreciated by RM10 to RM2,700 a tonne. Bernama
Source: New Straits Times