KUALA LUMPUR (March 10): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives rallied above RM3,900, the highest in 13 years since March 3, 2008 as the Malaysian Palm Oil Board (MPOB) reported lower-than-expected stock levels in the country.
The all-time high price for CPO futures was RM4,330, registered in March 2008.
Palm oil trader David Ng said the market expects a higher stockpile figure but the official report came out below expectation which resulted in positive sentiment in the market.
“We locate support at RM3,950 a tonne and resistance at RM4,050 a tonne,” he told Bernama.
At the close, the CPO futures contract for March 2021 gained RM47 to RM4,122 per tonne and April 2021 rose by RM76 to RM4,104 per tonne, while May 2021 added RM59 to RM3,974 per tonne and June 2021 increased by RM60 to RM3,839.
Total volume increased to 72, 284 lots from 64,155 yesterday while open interest improved to 263, 274 contracts from 252,486 contracts previously.
The physical CPO price for March South increased RM30 to RM4,100 per tonne.
Source: The Edge