CPO futures hit one-week high on worries over lower output

CPO futures hit one-week high on worries over lower output
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KUALA LUMPUR (Dec 7): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives hit a one-week high on Tuesday on concerns over weaker output ahead of a key crops report due this week.

The benchmark palm oil contract for February 2022 jumped RM181 to RM4,931 a tonne, the highest since Nov 29.

Palm oil trader David Ng said the report should help lift CPO prices higher, coupled with stronger soybean oil prices on the Chicago Board of Trade (CBOT).

“We locate support at RM4,700 per tonne and resistance at RM5,050 per tonne,” Ng told Bernama.

At the close, the CPO futures contract for December 2021 increased RM64 to RM5,305 a tonne, January 2022 gained RM161 to RM5,176 a tonne and March 2022 climbed RM182 to RM4,721 a tonne.

Meanwhile, April 2022 added RM178 to RM4,542 per tonne and May 2022 was higher by RM158 to RM4,399 a tonne.

Total volume dipped to 59,398 lots from Monday’s close of 65,540 lots while open interest increased to 246,879 contracts from 191,567 contracts previously.

The physical CPO price for December South rose RM100 to RM5,380 a tonne.