KUALA LUMPUR (June 26): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives snapped three consecutive days of losses to end higher on Wednesday on prospects of weaker production in the coming weeks, said palm oil trader David Ng.

“We see support at RM3,830 a tonne and resistance at RM3,980 a tonne,” he told Bernama.

Meanwhile, Fastmarkets senior analyst Sathia Varqa said the CPO futures traded higher in the second half session with the benchmark September contract rising RM35 to a high of RM3,894 a tonne, in anticipation of lower production data.

“The Southern Palm Oil Millers Association (SPPOMA) reported that the June 1-25 production was down by 5.62% from the corresponding period in May,” he said.

Sathia noted that the stronger CPO performance was also supported by a recovery in related edible oils on the Dalian Commodity Exchange (DCE).

According to reports, soybean oil futures closed higher on Wednesday in daytime trading at the DCE.

“The most active soybean contract for September 2026 delivery gained four yuan to close at 4,643 yuan per tonne, with total trading volume on the exchange amounting to 89,716 lots, and turnover of about 4.14 billion yuan,” it said.

At the close, the spot month July 2024 contract added RM29 to RM3,926 a tonne, August 2024 increased by RM20 to RM3,894 a tonne, and September 2024 was RM20 higher at RM3,879 a tonne.

October 2024 rose by RM19 to RM3,871 a tonne, November 2024 climbed RM20 to RM3,876 per tonne, and December 2024 gained RM19 to RM3,893 a tonne.

Total volume declined to 58,236 lots from Tuesday’s 65,240 lots, while open interest fell to 206,042 contracts from 211,517 contracts previously.

The physical CPO price for July South was RM30 higher at RM3,980 per tonne.

Uploaded by Lam Seng Fatt