Palm oil trader David Ng said the Malaysian Palm Oil Board’s (MPOB) data reported lower-than-expected stock levels as well as weaker-than-expected production.
"Low stock levels continue to drive prices higher amid a tight supply situation. We locate support level at RM4,350 per tonne and resistance level at RM4,580 per tonne,” he told Bernama.
According to MPOB, CPO stocks for July 2021 fell 11.85 per cent to 703,886 tonnes from 798,482 tonnes in June this year.
CPO output dropped by 5.17 per cent to 1.52 million tonnes against 1.61 million tonnes in June.
On Tuesday, independent inspection company AmSpec Agri Malaysia stated that exports of Malaysian palm oil products for Aug 1-10 dipped 10.3 per cent to 368,763 tonnes from 410,915 tonnes shipped during July 1-10 period.
At the close, the CPO futures contract for August 2021 rose RM189 to RM4,642 per tonne, September 2021 increased RM281 to RM4,628 per tonne, October 2021 advanced RM311 to RM4,511 per tonne, November 2021 went up RM302 to RM4,397 per tonne, December 2021 gained RM279 to RM4,309 per tonne, and January 2022 advanced RM280 to RM3,968 per tonne.
Total volume rose to 74,316 lots from Monday's 49,249 lots, while open interest expanded to 270,280 contracts from 243,950 contracts previously.
The physical CPO price for August South added RM150 to RM4,530 per tonne.
The market was closed on Tuesday for the Maal Hijrah public holiday.