CPO futures snap two days of losses to close firmer

CPO futures snap two days of losses to close firmer
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KUALA LUMPUR (Aug 3): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives snapped two straight days of losses to close firmer on Wednesday, tracking gains in soybean oil on the Chicago Board of Trade (CBOT), a dealer said.

Palm oil trader David Ng said the expectation of a weaker palm oil production had also lifted sentiment.

“Hence, we locate the support level at RM3,500 and resistance at RM4,200 a tonne,” he told Bernama.

At the close, the CPO futures contract for spot month August 2022 widened RM127 to RM3,985 a tonne, September 2022 climbed RM33 to RM3,886 a tonne, October 2022 inched up RM19 to RM3,864 a tonne, and November 2022 gained RM14 to RM3,883 a tonne.

Meanwhile, December 2022 was RM2 lower at RM3,931 a tonne and January 2023 declined RM8 to RM3,996 a tonne.

Total volume declined to 57,432 lots from 63,259 lots on Tuesday while open interest slid to 253,675 contracts from 259,198 contracts previously.

The physical CPO price for August South rose RM50 to RM4,100 a tonne.