KUALA LUMPUR (Oct 6): Bursa Malaysia crude palm oil (CPO) futures prices rose past RM5,000 a tonne for the first time to a record high on Wednesday (Oct 6) after the CPO price for October 2021 rose as much as RM75 to RM5,050.
At 10.34am, the CPO price for October 2021 stood at RM5,050 a tonne after the commodity was traded between RM5,019 and RM5,050 so far.
Malaysia's CPO futures prices touched RM5,000 a tonne for the first time in intraday trade on Tuesday.
It was reported on Tuesday that Malaysia's CPO futures prices closed at an all-time high, driven by tight supplies and strong demand from China. The benchmark palm oil contract for December 2021 surged RM155 to RM4,738 a tonne.
Quoting palm oil trader David Ng, Bernama reported that rising demand from China, which is currently in the midst of an energy supply crisis, may increase its intake of palm oil for biofuel.
“The robust crude oil prices also lifted sentiment in the market,” Ng said.
On Wednesday, CGS-CIMB Futures Sdn Bhd analysts, quoting Bloomberg, wrote in a note that palm oil prices extended gains to a fresh record on a wave of bullish factors, including the outlook for lower inventories in Malaysia, sturdy demand and concerns that production by top growers will fall short of expectations.
CGS-CIMB Futures said Bloomberg reported that palm oil demand from India, the top buyer, climbed ahead of a festival season as vegetable oils are used to make local sweets, fried food and other treats.
“[Palm oil] prices are also aided by economies reopening following Covid-19 lockdowns, boosting food and fuel consumption of edible oils, said an analyst,” CGS-CIMB Futures quoted Bloomberg as saying.