SAWIT: CPO futures end marginally higher on Oct 17
KUALA LUMPUR (Oct 17): Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives recouped earlier losses to end marginally higher on Monday (Oct 17), as sentiment turned bullish amid the ongoing escalation between Ukraine and Russia, said palm oil trader David Ng.
He said the persistent conflict will disrupt the supply of vegetable oil in the market, which boosts the appeal for palm oil.
“We locate support at RM3,500 and resistance at RM4,000 a tonne,” he told Bernama.
Meanwhile, Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said Indonesia’s reduction in palm oil export tax for the Oct 16-31 period is going to be painful for Malaysia, as it could lose the export market.
Indonesia has set the palm oil reference price for the Oct 16-31 period at US$713.89 (US$1=RM4.71) per tonne, down from US$792.19 per tonne for the Oct 1-15 period, putting the export tax sharply lower for CPO to US$3 per tonne for the Oct 16-31 period, from US$33 per tonne for Oct 1-15.
“Now, the focus is shifted to the production pace, wherein peak production could be seen last month itself but the increased availability of skilled foreign labour in Malaysian oil palm plantations might show some improvements.
“Another factor in focus would be Indonesia’s palm oil export levy waiver...whether or not it would be extended beyond October 2022 till end-December,” he added.
At the close, contract for November 2022 rose RM15 to RM3,801 per tonne, while December 2022 and January 2023 increased RM21 each to RM3,854 and RM3,887 per tonne respectively.
February 2023 was RM12 higher at RM3,909 per tonne, March 2023 added RM10 to RM3,935 per tonne, and April 2023 edged up RM1 to RM3,940 per tonne.
Total volume decreased to 63,935 lots from 79,838 lots on Friday (Oct 14), while open interest improved to 274,580 contracts from 206,691 contracts previously.
The physical CPO price for October South rose RM50 to RM3,800 per tonne.
https://www.theedgemarkets.com/article/cpo-futures-end-marginally-higher-oct-17
Sumber: The Edge Markets
