KUALA LUMPUR: Crude Palm Oil Futures (CPO) on Bursa Malaysia Derivatives Expected to Trade with a Bullish Bias Next Week, Following Strong Sentiment in Chicago Bean Oil Market as well as the prospect of better performance.
Palm oil trader David Ng said prices are expected to trade within a range as the market awaits major crop reports.
“We estimate the price to be negotiated within a range of RM 3,700 and RM 3,900 per tonne,” he told Bernama.
Meanwhile, Singapore-based Palm Oil Analytics owner and co-founder Dr Sathia Varqa said CPO futures have traded higher for the fourth day in a row, spurred by a larger increase. lower than expected output in June, but by a solid gain in exports.
“Malaysian Palm Oil Association data due next week will provide a clearer indication of the state of performance for June. For now, the CPO market is pricing sub-optimal production,” he said. .
Therefore, he added that for next week, CPO futures still have a chance to rise if the June S&D estimate shows a slower rise in production and lower inventories.
For the week just ended, the market closed largely higher, following overnight gains in soybean oil futures on the Chicago Board of Trade and the prospect of higher prices. exports after India reduced import tariffs on CPO to 10% and removed restriction on RBD palm olein.
On a weekly basis, the July 2021 contract earned RM 196 at RM 3,898 per ton, August 2021 got RM 263 at RM 3,864 per ton, September 2021 earned RM 269 at RM 3,789 per ton and October 2021 a confirmed RM 238 to RM 3,713 per ton.
Weekly volume was reduced to 312,143 lots from 381,462 lots the previous trading week, while open interest fell to 233,852 contracts from 234,760 contracts previously.
The physical CPO price for July South advanced from RM 230 to RM 3,980 per tonne. – Bernama