CPO FUTURES END HIGHER, TRACKING FIRMER SOYBEAN OIL FUTURES ON CBOT

By Danni Haizal Danial Donald

KUALA LUMPUR, Nov 26 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended higher on Tuesday, tracking the stronger soybean oil market on the Chicago Board of Trade (CBOT), a trader said.

Palm oil trader David Ng said the higher crude oil prices and the expectations of weaker output in the coming weeks also lifted market sentiment.

“Hence, we see support at RM4,650 a tonne and resistance at RM4,850 a tonne,” he told Bernama.

Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said CPO prices started recovering on bargain buying due to bullish recovery in CBOT soybean oil futures on the back of United States President-elect Donald Trump threatening to impose 25 per cent tariff on Mexican and Canadian products entering the country.

According to Anilkumar, Malaysian palm oil export for the Nov 1-25 period as estimated by AmSpec Agri Maysia was down by 8.19 per cent at 1.16 million tonnes, while Intertek Testing Services projected a drop of 9.22 per cent to 1.20 million tonnes from the Oct 1-25 period.

Furthermore, he said the Malaysian Palm Oil Association (MPOA) expects Malaysia’s palm oil production to decline by 5.19 per cent for the Nov 1-20 period. 

At the close, the spot month December 2024 contract increased by RM22 to RM4,851 per tonne, January 2025 rose by RM33 to RM4,800 per tonne, and February 2025 climbed by RM36 to RM4,735 per tonne.

The March 2025 contract advanced by RM43 to RM4,650 per tonne, April 2025 improved by RM50 to RM4,564 per tonne, and May 2025 surged by RM51 to RM4,480 per tonne.

Trading volume rose to 75,291 lots from 55,017 lots on Monday, while open interest narrowed to 233,557 contracts from 235,537 previously.

The physical CPO price for December South remained unchanged at RM4,950 per tonne.

-- BERNAMA