By Sharifah Pirdaus Syed Ali & Kisho Kumari Sucedaram

KUALA LUMPUR, Sept 15  -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives extended yesterday’s gains to close higher today on continued buying interest after lower prices last week, a dealer said.

Palm oil trader David Ng said the positive sentiment brought about by expectations of lower production in the coming weeks had lifted prices. 

“Prospect of better exports as India and China geared up purchases also contributed to the market sentiment across the board.

“We locate support at RM2,850 and resistance at RM3,000,” he told Bernama.

Meanwhile, Singapore-based Palm Oil Analytics’ owner and co-founder Dr Sathia Varqa said the market was in overdrive today after the hefty gains yesterday, supported by a stronger Dalian market and higher soybean oil close on the Chicago Board of Trade.

“Stronger Sept 1-15 export figure was also providing legs to the market, which is now eyeing RM3,000 per tonne on the new active month December on Thursday,” he added.

At the close, September 2020 eased RM12 to RM2,930 per tonne, October 2020 increased RM46 to RM2,969 per tonne, November 2020 rose RM48 to RM2,940 per tonne and December 2020 gained RM45 to RM2,909 per tonne.

Total volume eased to 53,916 lots compared with Monday's 57,812 lots, while open interest narrowed to 249,624 contracts from 252,290 contracts previously.

On the physical market, September South rose RM20 to RM2,970 per tonne.

Bursa Malaysia will be closed tomorrow for the Malaysia Day celebration and will reopen on Thursday.

-- BERNAMA