CPO futures likely to consolidate next week with bouts of profit-taking
The Star Online (19/12/2020) - KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to consolidate further next week with bouts of profit-taking as most of international traders will take a leave for the Christmas celebration and year-end holiday.
Interband Group of Companies senior palm oil trader Jim Teh said the price would likely move between RM3,300 and RM3,350 per tonne.
"This is the best price performance for year 2020," he told Bernama, adding that next week is a short day trading week due to the Christmas celebration.
For the week just ended, the CPO price was mostly higher, influenced by better demand for the commodity, the overnight rally in Chicago bean oil, as well as expectations of stronger exports and weaker production.
On a Friday-to-Friday basis, new month January 2021 increased RM109 to RM3,663 per tonne, February 2021 rose RM125 to RM3,535 per tonne, March 2021 surged RM140 to RM3,444 per tonne, and April 2021 added RM149 to RM3,359 per tonne.
Weekly volume increased to 266,582 lots from 238,606 lots in the previous week, while open interest down to 222,645 contracts from 225,842 contracts a week earlier.
The physical CPO price for January South up RM30 to RM3,680 per tonne. - Bernama