CPO for third month delivery rises to RM3,440

At 3.53pm, CPO for third month was up RM48 to RM3,426, off the intra-day high of RM3,440.

KUALA LUMPUR: Crude palm oil (CPO) futures for March delivery extended their advance to a record for the contract on optimism that surging prices for rival soybean oil and petroleum will increase the appeal of the tropical oil in food and biofuels.

“Palm is up in line with a rising soy complex and crude oil prices,” said Gnanasekar Thiagarajan, head of trading and hedging strategies at Kaleesuwari Intercontinental.

“Yesterday the correction we expected happened, but it quickly pulled back higher, implying the strong bullish sentiment that is pervading the entire edible oil complex.”

At 3.53pm, CPO for third month was up RM48 to RM3,426, off the intra-day high of RM3,440.

Soybean oil in Chicago climbed to the highest since 2014 as dry weather and labor strikes in Argentina worsen supply concerns at a time of strong demand.

Prices rose for the seventh day in eight. Crude oil is poised for a seventh weekly advance as U.S. lawmakers work on finalizing a stimulus package.

However, Indonesia’s plan to cut biodiesel use next year could cap gains in palm.

The Energy and Mineral Resources Ministry is seeking to reduce the volume of biodiesel blended with gasoil to 8.5 million kiloliters in 2021 from 9.2 million kiloliters, Djoko Siswanto, secretary general of the council, said.

The country has a mandate to use 30% of palm-biofuels with 70% diesel. - Bloomberg

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3

crude palm oil , soybean , petroleum


Did you find this article insightful?


100% readers found this article insightful

Next In Business News

MyEG posts RM75.5mil net profit in Q4
ANALYSIS: Top Glove bets on pandemic boom to propel ambitious US$1.9bil HK listing
Datasonic eyes Vietnam e-passport opportunity�
Yinson's unit bags RM1.5bil solar project in India�
Deloitte to pay RM324mil in settlement over 1MDB and SRC�
BIMB Investment launches Makmur myWakaf Fund
KLCI extends gains, closes 18 points higher
MISC’s ethane carrier Seri Everest delivers cargo in China
GlobalFoundries pours US$1.4b into fab expansion
Oil rises as U.S. vaccine progress raises demand expectations

Stories You'll Enjoy