KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed higher today on the back of stronger soybean oil prices during the Asian hours.
Palm oil trader David Ng located support at RM3,380 and resistance at RM3,500 per tonne.
Meanwhile, Singapore-based Palm Oil Analytics’ owner and co-founder Dr Sathia Varqa said the prices moved lower after the announcement of export tax for CPO but strong support from fundamentals of lower output, higher export, as well as tumbling stocks, helped the CPO futures to rebound.
"Malaysian refiners will be in a better position as CPO export prices will now be higher than refined products, so the reinstatement of the tax is positive for refiners and integrated industry players, ” he told Bernama.
Malaysia has set the export tax for CPO at eight per cent for January 2021.
Royal Malaysian Customs Department in a statement today, said the eight per cent export duty rate was set after the CPO market price reached RM3,450 per tonne and above.
The rate would be effective on Jan 1 until Jan 31,2021, marking the end of the zero export tax enjoyed from June to December 2020, which was aimed at raising the value of Malaysian palm exports to other countries, mainly India.
At the close, the CPO futures contract for January 2021 rose RM19 to RM3,664 per tonne, February 2021 was RM20 higher to RM3,514 per tonne, March 2021 increased RM10 to RM3,412 per tonne, and April 2021 widened RM6 to RM3,321 per tonne.
Total volume jumped to 62,855 lots from 43,285 lots on Monday, while open interest increased to 252,540 contracts from 215,375 previously.
The physical CPO price for January South rose RM20 to RM3,680 per tonne. - Bernama
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