KUALA LUMPUR (Bernama) -- Strong buying support continued to lift the crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives and close higher for three straight sessions.
Singapore-based Palm Oil Analytics owner and co-founder Dr Sathia Varqa said following this, benchmark April 2021 ended the week at its highest in 10 days.
He said the intensified buying may be due to talks that the Indian government was set to impose additional tariffs on imports of edible oil.
"CPO Futures was also racing up to catch up to Indonesian February tax levy at US$348,” he told Bernama.
It was reported that Indonesia has set a higher reference price for CPO for February at U$1,026.78 per tonne, from U$951.86 per tonne in the previous month.
Based on the reference price, the CPO export tax will be increased to U$93 per tonne in February, while the export levy will be at U$255 per tonne.
Meanwhile, Palm oil trader David Ng said the uptrend was also on the back of strong performance in the Chicago soybean oil market coupled with the expectation of weaker output.
In addition, soybean futures on Dalian Commodity Exchange also closed higher on Friday At the close, the CPO futures contract for February 2021 gained RM160 to RM3,935 per tonne, March 2021 went up RM127 to RM3,679 per tonne, April 2021 added RM102 to RM3,490 per tonne, and May 2021 was RM76 higher at RM3,365 per tonne.
Total volume rose to 86,870 lots from 76,265 lots on Wednesday, while open interest widened to 265,549 contracts from 250,426 contracts contracts previously.
The physical CPO price for February South increased RM130 to RM3,930 per tonne.
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