KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed higher yesterday, driven by lower September output from the Southern Peninsula Palm Oil Millers’ Association (SPPOMA).
Singapore-based Palm Oil Analytics’ owner and co-founder Dr Sathia Varqa said the 1.44% decline in SPPOMA’s output last month had pushed up the local market, along with stronger overnight gains of the Chicago soybean oil market.
“Bean oil market closed higher on supportive United States Department of Agriculture (USDA) quarterly stock report showing soybeans stocks were lower than expected, ” he told Bernama.
He added that the higher cash prices and widening palm discount to bean oil had attracted a sizeable number of olein deals.
Meanwhile, palm oil trader David Ng said the support for CPO price stood at RM2,800 and resistance at RM2,950.
However, an analyst said there would be a slight resistance in the CPO market in the coming week as top palm oil producer FGV Holdings Bhd’s products had been banned by the US Customs and Border Protection (CBP) based on allegations of forced labour.“FGV will be under pressure until the matter is resolved, which will impact market sentiment in the short run, ” she said.
It was reported yesterday that the US CBP’s Office of Trade has directed the issuance of a Withhold Release Order against FGV products based on information obtained through a year-long investigation that revealed forced labour indicators as well as concerns of forced child labour. — Bernama
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