KUALA LUMPUR, Dec 28 — The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives crossed above the RM3,000 level Friday, the highest in three years, driven by lower output and the recent announcement on biodiesel mandates in Indonesia and Malaysia.

Singapore-based Palm Oil Analytics owner and co-founder Dr Sathia Varqa said CPO futures rose sharply, soaring from 50 to near 100 points on all contract months.

“The hefty triple-digit gain on soybean oil and palm olein on the Dalian Commodity Exchange and a sizeable boost in soybean oil on the Chicago Board of Trade fortified CPO to trade above the 3,000 level,” he told Bernama.

Sathia said the repeated announcements on biodiesel mandates in Indonesia and Malaysia also reinforced the bullish sentiment that was already pervasive in the market.

However, the stronger ringgit, which traded at 4.1260/1290 versus the greenback compared with 4.1310/1350 on Thursday, made the commodity more expensive for international buyers.

At the close, the benchmark palm oil contract for March 2020 rose RM68 to RM3,073 per tonne, January 2020 gained RM66 to RM3,035 per tonne, February 2020 added RM73 to RM3,077, and April 2020 advanced RM69 to RM3,057 per tonne.

Volume increased to 39,187 lots from 31,545 lots yesterday, while open interest widened to 272,739 contracts from 267,984 contracts previously.

On the physical market, January south was RM70 higher at RM3,040 per tonne.

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