CPO futures close higher in Malaysia amid Middle East tensions

Published 2024년 10월 7일

Tridge summary

Crude palm oil (CPO) futures on Bursa Malaysia Derivatives rose due to increasing crude oil prices amid Middle East tensions that might affect Iran's oil supply. Despite these tensions, palm oil trader David Ng believes they won't have a long-term impact on CPO prices, which are more affected by short-term factors. The market saw improved trading sentiment in the second session, even with expectations of higher September end-month stocks and increased production in October. The Malaysian Palm Oil Association noted a 3% production decline in September compared to August. Both trading volume and open interest fell, while the physical CPO price for October South increased by RM10 to RM4,430 per tonne.

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Original content

KUALA LUMPUR (Oct 7): Crude palm oil (CPO) futures on Bursa Malaysia Derivatives closed higher on Monday, bolstered by strength in the crude oil market amid escalating tensions in the Middle East, said palm oil trader David Ng. He said concerns over potential disruptions to Iran's oil supply are pushing crude oil prices higher, which in turn is supporting CPO prices as the commodity is used as a biofuel feedstock. "The ongoing tensions in the Middle East are unlikely to have a long-term impact on CPO prices, as the market is driven primarily by short-term factors. “We see support at RM4,280 and resistance at RM4,400,” he told Bernama. Meanwhile, Fastmarkets Palm Oil Analytics senior analyst, Sathia Varqa, said CPO futures began the week in a lacklustre manner ahead of Malaysian Palm Oil Board data due on Wednesday. He noted that the trading sentiment improved in the second session as buying momentum picked up. “Expectations of higher September end-month stocks, better production ...

Source: Theedgemarkets