CPO FUTURES ON FRESH 2 WKS HIGH EVEN AFTER PARING MASSIVE GAINS AHEAD OF ESTIMATE DATA & IMMINENT LEVY CUT | POA Close 3 June 2021

 

CPO futures rose to a high of 4257 or up 165 points in early trade buoyed by rising in crude oil prices to a 2 year high fueled by strong summer demand travels in the U.S and, a solid 4.61% rise in soybean oil on CBOT. The gains spilled over to boost CPO and reinforced by over 300 points rise in the palm and near 300 points rise in bean oil on Dalian. Traded volume hit 6 months high. Asian equities market with the exception of China traded higher. CPO futures front-month spread to the third-month magnified to RM112 from below RM100 yesterday. Futures pared over 100 points on news of Indonesia mulling changes to export levy to be signed mid-Jun, plus some profit-taking ahead of the long weekend and May estimate data. CPO market is closed on Mon for a public holiday. Aug traded 4257-4111. Cash prices inched up for the third day running. Next: MPOA production data and poll survey ahead of MPOB 10 Jun.