CPO prices rebound on renewed buying interest

Palm oil fruits are seen placed on a wheelbarrow at a palm oil farm in Klang, outside Kuala Lumpur, February 19, 2014. — Reuters pic
Palm oil fruits are seen placed on a wheelbarrow at a palm oil farm in Klang, outside , February 19, 2014. — Reuters pic

KUALA LUMPUR, July 2 — The crude palm oil (CPO) futures contract on Bursa Derivatives rebounded from last Friday’s trading to end mostly higher today, supported by renewed demand for the commodity.

Phillip Futures Sdn Bhd Derivative Product Specialist David Ng said the better performance was due to the weaker-than-expected production for the month of June in line with the Hari Raya festival which resulted in lower harvesting cycle.

He said the buying momentum was apparent after the recent sell down in the last couple of days last week.

“We locate the support at RM2,250 a tonne and resistance at RM2,350 a tonne,” he said.



At the close, July 2018 and August 2018 added RM5 each to RM2,303 and RM2,331 a tonne, respectively, September 2018 rose RM3 to RM2,329 a tonne while October fell RM1 to RM2,329 a tonne.

Turnover decreased to 23,869 lots from Friday’s 38,260 lots, while open interest narrowed to 273,822 contracts from 289,922 contracts previously.  

On the physical market, July South was RM10 better at RM2,350 a tonne. — Bernama

Source: The Malay Mail Online





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