CPO futures expected to trade lower next week amid rising output concern
14/07/2024 (New Straits Times), Kuala Lumpur - Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to trade with a downside bias, given rising output expectation in the coming week, said palm oil trader David Ng.
"We expect prices to trade between RM3,850 per tonne and RM4050 per tonne next week," he told Bernama.
Meanwhile, Interband Group of Companies senior palm oil trader Jim Teh said the CPO market will be trading in the RM3,700 to RM3,800 per tonne range.
"This is essentially a technical correction due to the high inventory reported by the Malaysian Palm Oil Board for June, which is about 1.8 million tonnes," he said.
On a weekly basis, the spot month July 2024 contract decreased by RM118 to RM3,970 a tonne, August 2024 slid by RM105 to RM3,948/tonne, September was RM127 lower at RM3,915, October 2024 eased RM134 to RM3,892, November 2024 fell by RM133 to RM3,884, and December 2024 was down by RM128 to RM3,891 a tonne.
Total weekly volume shrank to 300,702 lots from 328,205 in the previous week, while open interest improved to 221,682 contracts from 233,507 a week ago.
The physical CPO price for July South dropped RM100 to RM4,030 a tonne on Friday from RM4,130 a week earlier.