KUALA LUMPUR, July 6 -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed higher today, with stronger crude oil prices spurring demand for the commodity.
Singapore-based Palm Oil Analytics’ owner and co-founder Dr Sathia Varqa said the CPO futures were also higher due to the expectation of a lower output for the month of June.
At press time, Brent crude oil rose 1.40 per cent to US$43.40 per barrel.
“The market showed strong stamina today, taking a cue from higher palm olein and soybean oil prices on the Dalian Exchange and higher Asian equities within market expectation,” he told Bernama.
At the close, July 2020 added RM12 to RM2,433, August 2020 rose RM24 to RM2,414, September 2020 inched up RM34 to RM2,392 and October 2020 increased RM31 to RM2,379.
Meanwhile, volume declined to 41,186 lots from last Friday’s close of 45,332 lots, while open interest shrank to 234,489 contracts from 238,796 contracts
On the physical market, July South added RM10 to RM2,450 per tonne.