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CPO futures end higher on lower stock expectations
February 16, 2023 21:45 pm +08
KUALA LUMPUR (Feb 16): Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives (BMD) ended higher on Thursday as the production pace loses momentum which may lower the stock level in the country, said a dealer.
Palm oil trader David Ng told Bernama that stronger soybean oil prices had also lifted market sentiment.
“We locate support at RM3,800 and resistance at RM4,250 a tonne,” he said.
Meanwhile, Singapore-based Palm Oil Analytics owner and co-founder Dr Sathia Varqa said CPO made solid gains of over 3% across the contract months with the new benchmark month racing to a five-week high.
“Strong bargain buying interest, firm soybean oil and palm olein on the Dalian Commodity Exchange, a weaker ringgit, and easing mid-February production outlook supported much of the rise today,” he told Bernama.
At the close, March 2023 jumped RM116 to RM4,030 per tonne, April 2023 surged RM128 to RM4,064 per tonne, May 2023 went up RM125 to RM4,069 per tonne, June 2023 soared RM122 to RM4,053 per tonne, and July 2023 rose RM118 to RM4,031 per tonne.
Meanwhile, August 2023 stood at RM4,005 per tonne.
Total volume expanded to 78,888 lots from 49,472 lots on Wednesday, while open interest leapt to 229,997contracts from 156,745 contracts previously.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Thomas Chan Yeu Wai
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Posted by Thomas Chan Yeu Wai > 2022-12-27 14:47 | Report Abuse
When the market tanks, never afraid to top up or average down this counter. Rest of counters need to think twice.