KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to trade slightly higher next week, said palm oil trader David Ng.
He said this was due to lower than expected production due to the recent labor shortage.
“We expect prices to trade between RM3,600 and RM4,100 next week,” he told Bernama.
Meanwhile, Interband Group of Companies senior palm oil trader Jim Teh expects the CPO market to trade between RM3,000 and 3,100 per tonne next week amid stocks. high and fears of a global recession.
He said it is hoped that lower prices will benefit consumers and help mitigate rising food inflation.
For the just-ended trading week, Malaysian CPO futures were mainly influenced by the Chicago bean oil market, high inventories in Malaysia and Indonesia, swings in oil prices oil and Indonesia’s decision to remove its export tax on palm oil.
From Friday to Friday, spot month August 2022 was up RM147 at RM3,707 per ton, September 2022 was RM116 higher at RM3,701 per ton, October 2022 was up RM90 at RM3,720 RM per ton and Nov 2022 increased by RM73 to RM3,751 per ton. December 2022 gained RM53 to RM3,800 per ton and January 2023 added RM41 to RM3,850 per ton.
Total volume rose to 360,695 lots from 270,789 lots the previous week, while open interest rose to 264,060 contracts from 222,879 contracts previously. The physical price of CPO for August South remained unchanged at RM3,800 per tonne from July South.