The benchmark third-month CPO contract finished RM129 or 3.32% higher at RM4,018 a tonne, according to
Bloomberg.
This is the third time this year that the price had breached the RM4,000 mark. It rose to RM4,017 on Jan 6, and subsequently hit RM4,034 on Feb 25.
The all-time high price for CPO futures is RM4,321, registered in March 2008, based on available data on Bloomberg.
CPO prices which had been on an uptrend, pulled back between Feb 25 and March 2. On March 2, the contract settled at RM3,816, down RM218 or 5.40% from the Feb 25 close of RM4,034.
However, the commodity resumed its rally over the last four trading days.
KUALA LUMPUR (Jan 20): Crude palm oil (CPO) prices are trading below the sharply high levels seen earlier this month and late last year, due to concerns that demand will reduce as Malaysia’s exports of the edible oil dropped.
The CPO contract for April delivery on Bursa Malaysia Derivatives closed RM77 lower at RM3,272 per tonne today. This is RM460 or 12.32% below its one-year high of RM3,733 registered on Jan 6.
Additionally, the contract has declined by RM317 or 8.83% from the RM3,590 registered on Jan 4, the first day of trading in 2021.
Earlier this month, CPO futures breached the RM4,000 mark for the first time since 2008. Based on
Due to pandemic fears, the CPO prices plunged in the first four months, but the prices bounced back strongly soon after that.
KUALA LUMPUR (Dec 25): Crude palm oil (CPO) prices have been on a steady climb since early May, and the edible oil is poised to post the highest year-end closing in 25 years, if not longer.
According to Bloomberg, generic three-month palm oil futures (expiring on Dec 31) are currently trading RM48 higher at RM3,854 a tonne, a 25-year high.
In contrast, the same contract stood at RM3,041 at the end of 2019, and RM2,004 at the end of 2018. And the current price level is a far cry from the RM732 registered at the end of 2000.
CRUDE palm oil (CPO) prices have been rising this year to attain an eight-year high despite the Covid-19 pandemic, suggesting brighter prospects for the plantation sector.
The most active CPO futures contract closed at RM3,437 last Friday. It had climbed to RM3,489 on Nov 19 after falling to a year-low of RM1,946 in May. Since then, prices have risen higher.
Spot prices breached the RM3,500 benchmark on Nov 19, rebounding from the low of RM2,030.50 on May 14, 2020.
MIDF Research Analyst Khoo Zhen Ye says the current rally in CPO prices has been premised on lower supply, as palm oil inventory levels have been declining despite now being the higher production period. A decline in soybean production in South America and in sunflower oil in the Black Sea also contributed to higher CPO prices.