MARKET DEVELOPMENT
CPO Futures Likely To Trend Higher Next Week
CPO Futures Likely To Trend Higher Next Week
21/03/2016 (Bernama) - Crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives are expected to continue their excellent performance next week to trade at between RM2,450 and RM2,520 a tonne.
Interband Group of Companies Senior Palm Oil Trader Jim Teh said the price has gone up quite well with speculators pushing it up.
"In addition, the dry season in March has affected production and pushed up the price further, although in the past two days it has started to rain, which may be good for production," he told Bernama.
He stressed that the producers and traders are very happy with this price level.
Teh said the resumption of Malaysia's palm oil export tax would help local refiners' efforts to export the commodity to consuming countries.
Malaysia has maintained a zero tax rate since May 2015.
Asked on France's move to impose an additional tax on palm oil used in food, he said the plan would place a minimal impact on Malaysia as the quantity exported to France is not significant.
"However, the concern is that this move will influence other European countries to take a similar step. We hope France will reconsider their decision and hopefully the Malaysian industrial regulators will communicate with French regulators on the matter," he added.
On a weekly basis, April 2016 added RM84 to RM2,633, May 2016 advanced RM73 to RM2,688, June 2016 was RM71 higher at RM2,679 and July improved RM60 to RM2,662 a tonne.
Turnover increased to 273,118 lots from 263,725 lots last week, while open interest rose to 235,115 contracts from 160,687 contracts.
On the physical market, March South was RM65 higher at RM2,615 a tonne from last week's RM2,550 a tonne.
Interband Group of Companies Senior Palm Oil Trader Jim Teh said the price has gone up quite well with speculators pushing it up.
"In addition, the dry season in March has affected production and pushed up the price further, although in the past two days it has started to rain, which may be good for production," he told Bernama.
He stressed that the producers and traders are very happy with this price level.
Teh said the resumption of Malaysia's palm oil export tax would help local refiners' efforts to export the commodity to consuming countries.
Malaysia has maintained a zero tax rate since May 2015.
Asked on France's move to impose an additional tax on palm oil used in food, he said the plan would place a minimal impact on Malaysia as the quantity exported to France is not significant.
"However, the concern is that this move will influence other European countries to take a similar step. We hope France will reconsider their decision and hopefully the Malaysian industrial regulators will communicate with French regulators on the matter," he added.
On a weekly basis, April 2016 added RM84 to RM2,633, May 2016 advanced RM73 to RM2,688, June 2016 was RM71 higher at RM2,679 and July improved RM60 to RM2,662 a tonne.
Turnover increased to 273,118 lots from 263,725 lots last week, while open interest rose to 235,115 contracts from 160,687 contracts.
On the physical market, March South was RM65 higher at RM2,615 a tonne from last week's RM2,550 a tonne.