KUALA LUMPUR, Nov 29 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives retained its uptrend for the third consecutive day to end higher on Friday, mainly driven by sentiments of tight supply amid strong demand.
Singapore-based Palm Oil Analytics owner and co-founder Dr Sathia Varqa said the market was also tracking the gains on China’s Dalian Exchange after the United States market closed for Thanksgiving.
He said at the close, Dalian rose by triple digits in palm olein’s first spot month close, and double digit higher for the rest of the months as well as against the soybean oil.
"Malaysia’s export for November declined 2.83 per cent compared with October, but this did not stop the futures from rising for three consecutive days, erasing the losses earlier in the week," he told Bernama.
Sathia said the stocks were expected to be lower in November compared to October.
At the close, CPO futures contract for December 2019 was down RM17 at RM2,620 per tonne, January 2020 was higher by RM22 to RM2,722 per tonne, February 2020 rose RM21 to RM2,744 per tonne and March 2020 increased RM20 to RM2,746 per tonne.
However, volume was lower at 57,438 lots from 77,049 lots yesterday, while open interest declined to 282,536 contracts against 308,753 contracts previously.
On the physical market, December South was RM10 better at RM2,680 per tonne.