CPO futures end higher, tracking gains in soybean oil

By Durratul Ain Ahmad Fuad

KUALA LUMPUR, April 26 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended higher today in tandem with the overnight gains in soybean oil prices on the US Chicago Board of Trade (CBOT), a dealer said.

“We locate support at RM6,000 a tonne and resistance at RM6,500 a tonne,” palm oil trader David Ng told Bernama.

Meanwhile, Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said CPO futures were higher today, correcting Monday's sharp decline driven by a rally in soybean oil prices on CBOT.

Following the confirmation from Indonesia's agriculture ministry that the palm oil export ban only affects RBD (refined, bleached and deodorised) palm olein, Bagani said Indonesia may raise the export of CPO, mainly to Malaysia, India and the European Union, and RBD palm oil to India, China, Pakistan, and the Middle East.

“The Indonesian RBD palm olein stocks are expected to surge and should cool down the domestic market prices. However, we may also see a decrease in CPO processing domestically in favour of a strong export margins for the commodity,” he said.

Bagani said Malaysia’s palm oil export during April 1-25 period continued to decline by double-digit.

“It is in contrast to the initial expectations of a stronger export due to the then Indonesian palm oil domestic market obligation policy and the Ramadan fasting month in the Indian subcontinent and Middle East. Production is also improving more than initially thought,” he said.

At the close, the CPO futures contract for May 2022 increased RM107 to RM7,079 a tonne, June 2022 gained RM178 to RM6,787 a tonne, July 2022 rose RM171 to RM6,400, and August 2022 added RM146 to RM6,134 a tonne.

September 2022 surged RM113 to RM5,965 a tonne and October 2022 climbed RM94 to RM5,880 a tonne.

Total volume shrank to 58,440 lots from Monday’s close of 86,873 lots while open interest soared to 259,846 contracts from 104,154 contracts previously.

The physical CPO price for May South was unchanged at RM7,100 a tonne.

-- BERNAMA