CPO futures to see volatile trading next week

KUALA LUMPUR: Crude Palm Oil Futures (CPO) on Bursa Malaysia Derivatives May See Volatile Trading with a Downward Bias Next Week, Ahead of Release of Production, Inventory and Export Data .

Singapore-based Palm Oil Analytics owner and co-founder Dr Sathia Varqa said the trade was also positive ahead of production, supply and demand data from the Malaysian Palm Oil Association. (MPOA) for May, which should be released next week.

“Markets will closely monitor data from the Malaysian Palm Oil Board (MPOB) due on June 10.

“So the CPO market will trade based on supply and demand estimates and export data from May 1 to May 31, which is expected to be bearish,” he told Bernama.

He added that market participants are also waiting to hear confirmation of Indonesia’s June export tax which was not due today but would be announced on Monday.

According to data from Intertek Testing Services, exports for the period May 1 to 25 edged up 0.25% to 1.105 million tonnes, compared to 1.102 million tonnes during the same period in April 2021.

Freight inspector Amspec Malaysia, meanwhile, said exports during the period May 1 to 25 increased 0.33 percent to 1.107 million tonnes, from 1.103 million tonnes during the period. same period last month.

For the week just ended, the Malaysian CPO futures market traded mixed due to the weak performance of soybean oil at the US Chicago Board of Trade, as well as the slight rally. palm olein’s performance on China’s Dalian Commodity Exchange and bargain buys.

On a weekly basis, CPO futures were mixed. June 2021 dropped from RM90 to RM4,301 per ton and July 2021 decreased from RM9 to RM4,160 per ton, but August 2021 added RM19 to RM4,010 per ton and September 2021 increased from RM40 to RM 3,894 per ton.

Weekly volume fell to 284,060 lots from 368,985 lots the previous trading week, while open interest fell to 243,856 contracts from 263,477 contracts a week earlier.

The physical CPO price for South May has slipped from RM90 to RM4,360 per tonne. – Bernama


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