KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives extended gains to close higher, amid expectation of lower production in the coming weeks, a dealer said.
Phillip Futures Sdn Bhd derivatives product specialist David Ng said, however, the rise yesterday was capped by sluggish exports demand, which saw the distant month trade lower.
Citing the Southern Peninsular Palm Oil Millers Association data, he said production for June fell 15.03% against May this year, and the decline prompted the expectation of a continued fall in production in the coming weeks.
Meanwhile, according to cargo surveyor Intertek Testing Services last Friday, exports of Malaysian palm oil products for June fell 19.9% to 1.34 million tonnes from 1.68 million tonnes shipped during May, signalling slower export demand, he added.
At the close, July 2019 and August 2019 gained RM14 each to RM1,904 and RM1,944 a tonne, respectively, while September 2019 and October 2019 added RM9 each to RM1,967 and RM2,001 a tonne respectively.Turnover increased to 46,579 lots from 38,356 lots on Monday, while open interest rose to 265,825 contracts from 257,114 contracts.
On the physical market, July South rose RM10 to RM1,920 a tonne from RM1,910 a tonne on Monday. — Bernama