CPO Futures likely to see muted trading next week ahead of MPOB report
07/07/2024 (New Straits Times), Kuala Lumpur - The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to see muted trading next week ahead of the Malaysian Palm Oil Board's (MPOB) key crop report, said a trader.
Palm oil trader David Ng said MPOB will release a palm oil supply and demand report on July 10, and market players will await the report for additional trading insights.
"We anticipate prices to trade between RM3,920 per tonne and RM4,080 per tonne with a sideways market," he told Bernama.
Meanwhile, Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said market players will monitor the MPOB June supply and demand previews.
"We estimate that the Malaysian palm oil stocks at the end of June to rise 5.789 per cent to 1.854 million tonnes on the back of a four per cent decrease in production and a 10.7 per cent decline in exports,' said Anilkumar.
A Bloomberg survey forecast the end stocks at 1.82 million tonnes with a six per cent decline in production and a 10 per cent fall in exports, he said, adding that a Reuters poll also estimated June end stocks rising to 1.83 million tonnes with a 10 per cent decline in exports and a five per cent loss in production.
Anilkumar said the market is waiting for the Malaysian Palm Oil Association's full month production data for palm oil, which is expected to be released middle of this month.
On a weekly basis, the spot month July 2024 contract increased RM112 to RM4,088 a tonne, while August 2024 and October 2024 went up RM121 to RM4,053 a tonne and RM4,026 a tonne, respectively.
Meanwhile, September 2024 put on RM126 to RM4,042 a tonne, November 2024 rose RM114 to RM4,017 a tonne and December 2024 was RM108 firmer at RM4,019 a tonne.
Total weekly volume climbed to 328,205 lots from 287,750 lots in the previous week, while open interest improved to 233,507 contracts from 203,691 contracts a week ago.
The physical CPO price for July South jumped RM130 to RM4,130 a tonne on Friday from RM4,000 a week earlier.
Bursa Malaysia Bhd and its subsidiaries will be closed on Monday, July 8, 2024, in conjunction with Awal Muharam and resume operations on Tuesday, July 9.
-- BERNAMA