The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives has rallied to its highest in more than 10 years on strong market sentiment, tracking the uptrend in the soybean market.
Palm oil trader David Ng said strong sentiment in the crude oil market coupled with the surge in the Chicago soybean oil market led to gains in the palm oil market.
“We locate support at RM3,800 a tonne and resistance at RM3,950 a tonne,” he told Bernama.
At the close yesterday, the CPO futures contract for March 2021 and April 2021 gained RM123.0 each to RM4,070 per tonne and RM4,012 per tonne respectively, while May 2021 and June 2021 added RM137.0 to RM3,878 per tonne and RM3,731 per tonne respectively.
Total volume increased to 79,298 lots from 63,827 last Friday while open interest rose to 269,357 contracts from 251,949 contracts previously.
The physical CPO price for March South jumped RM100 to RM4,060 per tonne.