03.09.2020 (www.theedgemarkets.com) - KUALA LUMPUR (Sept 3): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives extended its upward momentum today, reaching an eight-month high and extending its upward momentum in the last five days.
Singapore-based Palm Oil Analytics’ owner and co-founder Dr Sathia Varqa said this was in line with the firmer soybean oil futures prices on the Chicago Board of Trade (CBOT) overnight.
"The gains were supported by lower production outlook and higher soybean oil on the CBOT and Dalian market and are currently advancing ahead of the MPOA and MPOB data," he told Bernama.
He added that this was on one bullish variable — higher production — while exports were seen lower and stocks higher.
Palm oil plantations are heading towards higher production now as the country is expected to face a rainy season at year-end.
Support is located at RM2,800 with the next resistance placed at RM2,950.
At the close, September 2020 added RM48 to RM2,970 per tonne, October 2020 gained RM85 to RM2,943 per tonne, November 2020 bagged RM80 to RM2,891 per tonne, and December 2020 improved RM73 to RM2,854 per tonne.
Total volume rose to 58,181 lots compared with 48,146 lots on Wednesday, while open interest increased to 241,807 contracts from 233,583 contracts previously.
Meanwhile, the physical CPO price was RM75 higher at RM2,995 per tonne for September South.