CPO futures end higher on expectation of lower stocks

CPO futures end higher on expectation of lower stocks

KUALA LUMPUR (Feb 11): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives erased yesterday’s losses to end higher on Friday amid expectation of lower stocks in the coming weeks.

Palm oil trader David Ng said a weak production was seen as supporting CPO prices.

“Stronger crude oil prices also lifted sentiment in the market,” he told Bernama.

Yesterday, the Malaysian Palm Oil Board reported that the country’s CPO inventory fell 7.7% to 786,828 tonnes last month from 852,339 tonnes in December 2021 amid lower production.

At the time of writing, benchmark Brent crude oil price stood at US$91.72 per barrel.

At the close on Friday, the CPO futures contract for February added RM60 to RM5,800 a tonne, March 2022 rose RM60 to RM5,709 a tonne, April 2022 gained RM45 to RM5,580 a tonne, May 2022 increased RM38 to RM5,417 a tonne, June 2022 was RM16 higher at RM5,250 a tonne, and July 2022 improved RM13 to RM5,091 a tonne.

Total volume decreased to 72,103 lots from Thursday’s close of 74,261 lots, while open interest narrowed to 272,630 contracts 280,440 contracts previously.

The physical CPO price for February rose RM60 to RM5,860 a tonne.

http://www.theedgemarkets.com/article/cpo-futures-end-higher-expectation-lower-stocks