KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives rallied today to close at the highest level in more than five months, tracking the robust rise in soybean oil and palm olein prices on the Dalian Exchange.
The benchmark palm oil contract for August 2020 rose to RM2,754 per tonne -- the highest since Feb 18,2020.
Singapore-based Palm Oil Analytics’ owner and co-founder Dr Sathia Varqa said a lower production outlook amid improving exports also kept the market prices firm.
"CPO price is likely to advance and test RM2,700 per tonne while a bout of profit-taking will set in, ” he told Bernama.

Sathia added that market players were anticipating that heavy rains in Kalimantan, Indonesia, would disrupt harvest and this would likely drive prices higher.
The CPO market will focus on the July 1-20 production estimate from the Malaysian Palm Oil Association (MPOA) next week for market direction.
Meanwhile, according to independent inspection company AmSpec Agri Malaysia, exports of palm oil products for July 1-20 fell 3.5 per cent to 1,170,709 tonnes from 1,213,696 tonnes shipped during June 1-20.
At the close, August 2020 gained RM55 to RM2,754 per tonne, September 2020 rose RM58 to RM2,708 per tonne, October 2020 advanced RM47 to RM2,661 per tonne and November 2020 climbed RM39 to RM2,629 per tonne.
Total volume shrank to 47,806 lots from last Friday’s 58,318 lots, while open interest dipped to 237,823 contracts from 246,199 contracts previously.
On the physical market, August South gained RM50 to RM2,750 per tonne. – Bernama

https://www.thestar.com.my/business/business-news/2020/07/20/cpo-futures-hit-five-month-high-of-rm2754-per-tonne
Source: thestar.com.my