CPO PRICE ON JULY 6: Rebounding for Four Days in a Row

September 2017 CPO futures, the most active contract on Bursa Malaysia, gained 0.67 percent, or 17 points, to RM2,555 per ton as at 11.29am.
Earlier today, the CPO price opened marginally higher by 0.08 percent, or two points, at RM2,540, after a sharp increase of 1.10 percent, or 30 points, to RM2,538 yesterday.
The CPO September contract extended its rally for the fourth day after it ended 1.79 percent, or 44 points, higher at RM2,503 on July 3.
“The market is factoring in the possibility that production in Malaysia could be weaker in June,” Paramalingam Supramaniam, director of broker Pelindung Bestari was quoted as saying by Bloomberg.
A Bloomberg survey estimates Malaysia’s palm oil output to decline by 0.6 percent month-on-month in June. Meanwhile, research house CIMB said Malaysia’s palm oil stocks remained flat at 1.55 million tonnes in June.
There is also expectation that the softer ringgit could boost demand.
The ringgit was quoted at 4.2985 against the US dollar as at 11.44am, down 0.01 percent from yesterday’s close of 4.2980.

Movement of September 2017 CPO Contract





Date


Level


Change




July 6, 2017
(11.29am)


2,555


+0.67%




July 5, 2017


2,538


+1.20%




July 4, 2017


2,508


+0.20%




July 3, 2017


2,503


+1.79%




June 30, 2017


2,459


-0.41%





Source: Bloomberg