By Zufazlin Baharuddin
KUALA LUMPUR, May 26 (Bernama) -- Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended higher today due to a weaker ringgit coupled with higher crude oil prices.
Palm oil trader David Ng told Bernama the gains in Chicago Board of Trade (CBOT) soybean oil futures overnight also lifted market sentiment for the commodity.
Meanwhile, Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said the market was boosted by estimates from the Malaysian Palm Oil Board (MPOB) that weather phenomenon El Nino would curtail production next year.
According to MPOB director-general Datuk Dr Ahmad Parveez Ghulam Kadir, the country’s oil palm cultivation is forecast to be impacted by El Nino next year, reducing CPO production by up to five per cent.
At the close, June 2023 contract rose RM25 to RM3,590 a tonne, July 2023 climbed RM52 to RM3,602 a tonne and August 2023 increased RM66 to RM3,559 a tonne.
September 2023 contract garnered RM72 to reach RM3,554 a tonne, October 2023 advanced RM71 to RM3,557 a tonne and November 2023 surged RM73 to RM3,560 a tonne.
Total volume fell to 66,442 lots from 67,293 lots on Thursday while open interest decreased to 259,646 contracts from 264,738 yesterday.
Physical CPO price for June South was down RM10 to RM3,620 a tonne.