Palm | Kelapa Sawit

CPO futures reversed previous day losing streak to end generally higher. Position squaring activities ahead of Chinese New Year holiday were evident in late trading session. Earlier trades were in dull mode stuck in the range of 1821-1838 with midday volume at 1,108 contracts which far below the average of 3000-4000. Surprise move came in late session boosted by position squaring activities. Benchmark Apr 09 pushed to the intra-day high at 1881 before settling RM 61 higher at 1870. Total daily volumes accelerated to 12,483 contracts changed hands. Another reason of position squaring may due to the higher initial margin charged for CPO futures which increase to RM 10,700 from RM 7,250 effective by today.