KUALA LUMPUR: Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended higher on Wednesday as price rallied above RM4,900 per tonne for the January 2025 benchmark contract, a trader said. Palm oil trader David Ng attributed the positive market sentiment to stronger export pace and a weaker ringgit against the United States (US) dollar. Ng noted support at RM4,800 per tonne and resistance at RM4,950.

According to BERNAMA News Agency, Fastmarket Palm Oil Analytics senior analyst Sathia Varqa indicated that CPO futures regained their buying momentum, driven by the expectation of a bullish price outlook. This outlook is fueled by a tight supply narrative anticipated from a leading analyst at a major palm oil conference set to begin tomorrow in Bali, Indonesia. The event is organized by the Indonesia Palm Oil Association (IPOC), commonly known as GAPKI.

Sathia Varqa also mentioned that the ringgit settled at RM4.40 against the US dollar, influenced by volatile movements in the US dollar ahead of
the US Federal Reserve’s benchmark interest rate decision on Thursday. Additionally, there is market anxiety over US presidential election uncertainty, potentially pointing to a return of Donald Trump.

At the market close, the spot month November 2024 contract rose RM85 to RM4,999 per tonne, December 2024 surged RM102 to RM4,957 per tonne, and January 2025 advanced by RM111 to RM4,917 per tonne. February 2025 rose by RM117 to RM4,862 per tonne, March 2025 added RM114 to RM4,777 per tonne, and April 2025 was RM107 higher at RM4,677 per tonne. Trading volume decreased to 78,859 lots from 84,057 on Tuesday, while open interest increased to 243,835 contracts from 240,020 previously. The physical CPO price for November South soared RM40 to RM5,020 per tonne.