KUALA LUMPUR – The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed higher on the first trading day of 2021, hitting its highest level since February 2011 with the benchmark March 2021 at RM3,724 per tonne.
Trader David Ng said the performance is the best in almost 10 years, owing to the strong showing in the Chicago Board of Trade.
He said the prospect of lower production continues to drive prices higher due to floods this monsoon season.
Since Friday, several areas in Johor and Pahang have been hit by floods following continuous downpours.
“This will affect production in the country, since Pahang and Johor contribute roughly 30% of the country’s total production,” Ng told Bernama.
“Thus, it will likely affect January production, and may overlap into February as well.”
At the close, the CPO futures contract for this month jumped RM59 to RM3,950 per tonne, February 2021 was RM107 higher at RM3,871 per tonne, March 2021 increased RM124 to RM3,724 per tonne, and April 2021 added RM117 to RM3,590 per tonne.
Total volume strengthened to 55,390 lots from 33,179 on Thursday, while open interest gained 218,079 contracts from 196,440 previously.
The physical CPO price for January South added RM90 to RM3,960 per tonne. – Bernama, January 4, 2021
