CPO futures could see profit trading in quiet trading next week

KUALA LUMPUR, April 30 (Bernama): Crude palm oil (CPO) futures on Bursa Malaysia Derivatives is expected to see quiet trading next week ahead of Labor Day and Hari Raya Aidilfitri holiday, said Jim Teh, senior palm oil trader of the Interband Group of Companies.

He said the market may also see some profit-taking activity after the long break with prices expected to hover between RM5,500 and RM6,500 per ton.

“The market may see some profit-taking activity due to the shortened trading week.

“Also, many local and international palm oil traders are probably on vacation,” he told Bernama.

Palm oil trader David Ng said he expects the market to trade sideways next week due to the long holiday.

“The market is well supported by news of Indonesia’s export ban and prices are expected to be between RM6,700 and RM7,300,” he said.

Palm Oil Analytics owner and co-founder Sathia Varqa said the short two-day trading next week could lead to profits after record prices with strong gains.

CPO futures closed at a record high of RM7,105 a tonne on Friday, up 2.76%, reflecting strong gains in US Chicago Board of Trade (CBOT) soybean oil prices. .

“Tight global vegetable oil supply prospects following Indonesia’s complete withdrawal from the market and the war between Ukraine and Russia, plus a CBOT flash sale were enough to fuel record soybean prices. and palm oil ahead of the long weekend in Malaysia, Indonesia, China and Japan,” he said.

Bursa Malaysia Bhd and its subsidiaries announced that the exchange will be closed on May 2, 2022 (Monday) in conjunction with the Labor Day replacement holiday and closed for two additional days on May 3 and 4 (Tuesday and Wednesday) for Hari Raya Aidilfitri.

Bursa Malaysia and its subsidiaries will resume operations on May 5, 2022 (Thursday).

In the past week, CPO futures traded mostly higher alongside overnight gains in soybean oil prices on the CBOT, the ban on Exporting palm oil to Indonesia continued to bolster market sentiment and the expectation of lower production in the coming weeks.

Friday to Friday, May 2022 gained RM812 to RM7,683 per ton, June 2022 rose from RM972 to RM7,597 per ton, July 2022 rose from RM749 to RM7,104 per ton, Aug 2022 rose from RM592 to RM6,754 per ton, September 2022 was RM474 higher at RM6,519 per ton, and October 2022 jumped from RM425 to RM6,391 per ton.

Weekly volume rose to 376,616 lots from 204,757 lots last week, while open interest widened to 206,333 contracts from 203,392 contracts previously.

The physical CPO price for May South jumped from RM850 to RM7,750 per ton. – Bernama

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