The Edge Markets (21/04/2021) - KUALA LUMPUR (April 21): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives continued its upward momentum to end higher today driven by lower April output from the Southern Peninsula Palm Oil Millers' Association (SPPOMA).
The SPPOMA data revealed that April 1-20 output was marginally lower by 0.1% compared to the same period last month which pushed up the local market, along with stronger overnight gains from the Chicago soybean oil market.
“The soybean oil’s gain continued to support short-term sentiment coupled with weaker output which may reduce overall stock in the country,” palm oil trader David Ng told Bernama.
At the close, CPO futures contract for May 2021 recovered RM110 to RM4,341 per tonne, June 2021 rose by RM111 to RM4,098 per tonne, July 2021 strengthened RM89 to RM3,894 per tonne and August 2021 was up by RM67 to RM3,747 per tonne.
Total volume soared to 70,193 lots from 60,118 lots on Tuesday, while open interest surged to 272,538 contracts from 262,860 contracts previously.
The physical CPO price for May South improved by RM110 to RM4,360 per tonne.
Read more at https://www.theedgemarkets.com/article/sppoma-data-stronger-soybean-price-push-cpo-close-higher