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Bursa Malaysia Derivatives' crude palm oil (CPO) futures contract expired on Tuesday (November 2, 2021) amid long-standing concerns over weak output, a dealer said.
Mumbai-based Sunvin Group’s commodity research head Anilkumar Bagani said CPO futures ended higher on Tuesday as participants speculated that Malaysia palm oil production could be lower than estimated.
“Palm oil cash market prices continued to stay at a higher range but at premium over sunflower oil in free-on-board terms, while, at marginal discount under crude degummed soya bean oil.
“The destination demand has been quiet in palm oil because of such unfavourable spreads.
“Market focus will be now on full month Malaysian palm oil production estimates from the Malaysian Palm Oil Association (MPOA) and the Malaysian Palm Oil Board (MPOB) monthly supply and demand previews prior to the actual MPOB release next week,” he told Bernama.
Bagani said according to a market survey carried out by UOB KayHian, October production for Malaysian palm oil is estimated to be at a range from minus two per cent to two per cent on the month.
Meanwhile, palm oil trader David Ng said CPO futures ended higher after the market reversed earlier losses as prospect of a weaker production continued to lift market sentiment.
“We locate support at RM4,850 and resistance at RM5,100 a tonne,” he said. Find more.
Source: Online/KSU
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