KUALA LUMPUR, Feb 6 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed higher today, tracking the better performance of soybean oil price on the Chicago Board of Trade.
Palm oil trader David Ng told Bernama the higher crude oil price also provided a fillip to the CPO prices today.
He added that the anticipation of weaker oil palm production in January also contributed to the gains in the CPO market.
“We locate the next support level at RM2,800 per tonne and resistance at RM2,950 per tonne,” he said.
Yesterday, the Malaysian Palm Oil Association (MPOA) released data for January 2020, which showed that palm oil production fell 15.53 per cent to 1.13 million tonnes compared with December 2019.
Meanwhile, on the international front, Singapore-based Palm Oil Analytics owner and co-founder Dr Sathia Varqa said news that China planned to halve tariffs on US$75 billion (US$1=RM4.12) worth of US goods over the 2019 novel coronavirus outbreak had bolstered market sentiment and ultimately pushed the CPO market higher.
At the close, the CPO futures contracts for February 2020 and March 2020 gained RM45 each to RM2,898 per tonne and RM2,886 per tonne respectively, while April 2020 was RM46 higher at RM2,850 per tonne and May 2020 surged RM47 at RM2,818 per tonne.
Volume was down to 64,241 lots from Wednesday's 78,380 lots, while open interest dropped to 317,169 contracts from 334,815 contracts previously.
On the physical market, February South rose RM120 to RM2,980 per tonne.
Palm oil, CPO, David Ng, Dr Sathia Varqa, Coronavirus, MPOA