FCPO Futures Closed Higher Tracking Rally In CBOT Soybean Oil

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FCPO Closed Higher Tracking Rally In CBOT Soybean Oil
FCPO ended higher amid the news that Indonesia would increase its biodiesel mandate in the next few years.

The Crude Palm Oil Futures (FCPO) closed higher tracking rally in the Chicago Board of Trade (CBOT) soybean oil as a result of news that Indonesia’s biodiesel mandate would increase

KUALA LUMPUR — The Crude Palm Oil Futures (FCPO) Contract on Bursa Malaysia Derivatives closed higher today, tracking bullish momentum in the Chicago Board of Trade (CBOT) soybean oil market.

Fastmarkets Palm Oil Analytics managing editor, Dr. Sathia Varqa said the chaos in Russia over the weekend had little impact on crude oil prices but new risks are present.

Fastmarkets Palm Oil Analytics managing editor, Dr. Sathia Varqa
Fastmarkets Palm Oil Analytics managing editor, Dr. Sathia Varqa

“The higher energy prices (crude oil or gas) can fuel up higher commodity prices including FCPO,” he told Bernama.

Meanwhile, palm oil trader David Ng said the FCPO ended higher amid the news that Indonesia would increase its biodiesel mandate in the next few years.

It was reported that the biggest palm oil producer has planned to raise its mandatory palm oil-based biodiesel blending to 40 per cent in the next few years but would keep its blending unchanged at 35 per cent for now.

At the close, July 2023 gained RM95 to RM3,739 per tonne, August 2023 added RM100 to RM3,729 per tonne, September 2023 improved RM99 to RM3,719 per tonne and October 2023 rose RM97 to RM3,715 per tonne.

November 2023 put on RM93 to RM3,723 per tonne and December 2023 earned RM104 to RM3,734 per tonne. 

The total volume was marginally lower at 35,003 lots from 48,311 lots on last Friday, while open interest declined to 213,995 contracts from 224,995 previously.

The physical FCPO price for July South gained RM80 to RM3,760 per tonne. — Bernama

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