KUALA LUMPUR, Oct 25 — The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives rallied to a year high as Malaysia seeks to resolve the palm oil issue with India.
Additionally, it was also reported that Malaysia’s palm oil export to China soared about 42 per cent in the first 20 days of this month.
Earlier today, International Trade and Industry Minister Datuk Darell Leiking was quoted as saying that Malaysia would engage with the Indian government in an effort to address the palm oil issue.
“We will engage with their government. Whatever it is, palm oil is a trade that cannot be stopped just like that as it will affect a lot of people; not only Malaysians but also those trading in the global market as well as India itself,” he said.
Darell had met with Indian Minister of Commerce and Industry Piyush Goyal to discuss the palm oil issue on the sidelines of the Regional Comprehensive Economic Partnership Ministerial Meeting in Bangkok on Oct 10-12.
Meanwhile, palm oil trader David Ng said the CPO prices were also aided by the strong export performance which is seen as supporting the market in the short term.
“We locate support level at RM2,300 per tonne and resistance at RM2,450 per tonne,” he told Bernama.
The benchmark palm oil contract for January 2020 ended higher at RM2,382 per tonne, the highest since Feb 7 when it closed at RM2,338 per tonne.
CPO futures contract for November 2019 rose RM48 to RM2,287 per tonne, December 2019 perked up RM53 to RM2,336 per tonne and February 2020 gained RM61 to RM2,421 per tonne.
Volume increased to 63,356 lots from 52,215 lots on Wednesday while open interest rose to 262,146 contracts from 258,038 contracts previously.
On the physical market, November South was RM40 higher at RM2,285 per tonne.