CPO FUTURES RECOUP EARLIER LOSSES TO END MIXED

NIAM SEET WEI

KUALA LUMPUR, March 13 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives has recouped earlier losses to finish the week on a mixed note.

Singapore-based Palm Oil Analytics’ owner and co-founder Dr Sathia Varqa said a slew of big money measures, such as the US Federal Reserve and other central banks pumping liquidity into the financial system, the European Central Bank’s (ECB) stimulus package and the People's Bank of China's reserve requirement ratio cut, offered a powerful mix of policy weapons to arrest the rout in the financial markets. 

"The rebound in European equities in early trade also helped the recovery in the CPO futures," he told Bernama.

However, Sathia warned that market sentiment remained cautious due to jittery macro market outlook amid the COVID-19 gloom.

At the close, the CPO futures contract for March 2020 was flat at RM2,302 per tonne, April 2020 and May 2020 rose RM7 each to RM2,323 and RM2,284 per tonne, respectively, while June 2020 was RM1 easier at RM2,270 per tonne.

Volume, however, advanced to RM90,683 lots from 85,713 lots on Thursday, and open interest widened to 321,588 contracts versus 319,185 contracts yesterday.

On the physical market, March South was unchanged for the second consecutive day at RM2,400 per tonne.

-- BERNAMA

 

TAGS: CPO futures, palm oil, Palm Oil Analytics, COVID-19, US Federal Reserve, European Central Bank