https://www.theedgemarkets.com/article/cpo-futures-end-higher-news-b20-biodiesel-scheme
Source: theedgemarkets.com

KUALA LUMPUR (Dec 20): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed higher underpinned by expectations of stronger demand following news of the B20 biodiesel programme.

Primary Industries Minister Teresa Kok Suh today said the B20 biodiesel programme for the transport sector is expected to be launched in phases next year.

"She announced an allocation of RM35 million for the programme that would give a fillip to CPO prices, which are projected to reach RM3,000 per tonne,” Singapore-based Palm Oil Analytics owner and co-founder Dr Sathia Varqa told Bernama.

Sathia said the gains in the local market were also tracking the firmer overnight performance on the Chicago Board of Trade (CBOT) soybean oil market following the US Environmental Protection Agency (EPA) confirming higher biodiesel quota for lifter palm.
US President Donald Trump has reportedly given his commitment that biofuel requirements would be expanded in 2020.

Meanwhile, palm oil trader David Ng said the uptrend in the local market was also supported by expectations of lower production following the seasonal monsoon period.

“We locate the next support at RM2,850 per tonne and resistance at RM2,950,” he said.

At the close, the CPO futures contract for January 2020 added RM44 to RM2,897 per tonne, February 2020 was RM46 higher at RM2,915 per tonne, while March 2020 increased RM38 to RM2,912 per tonne and April 2020 rose RM35 to RM2,892 per tonne.

Volume, however, declined to 37,426 lots from 49,986 lots yesterday and open interest decreased to 277,451 contacts from 286,974 contracts previously.

On the physical market, December South increased to RM2,950 per tonne from RM2,900 per tonne on Thursday.