KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended higher for the second consecutive day on the back of a weaker ringgit against the US dollar, said a dealer.
The weaker currency made the commodity attractive for overseas buyers, said the dealer, adding that lower CPO stocks and production last month, as reported by the Malaysian Palm Oil Board recently, also lent support to market sentiment.
“This provides support to the market and helps allay concerns on rising palm oil inventories and production,” he added.
At the close, May 2019 and June 2019 increased RM30 each to RM1,957 and RM1,988 a tonne, respectively, while July 2019 expanded by RM29 to RM2,014 a tonne and August 2019 improved by RM24 to RM2,033 a tonne.
Turnover jumped to 50,703 lots from 35,533 lots on Monday and open interest went up to 271,519 contracts from 259,280 contracts yesterday.
On the physical market, May South rose RM20 to RM1,970 a tonne.