CPO futures expected to trade with downside bias next week
11/08/2024 (New Straits Times), Kuala Lumpur - The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to trade with a downside bias next week, with prices anticipated to range between RM3,650 and RM3,850 per tonne, according to a trader.
Palm oil trader David Ng told Bernama that concerns over rising production and sluggish export pace are influencing this outlook.
A news report said that palm oil inventories in Malaysia were expected to decline in July for the first time after three consecutive months of increase.
The Malaysian Palm Oil Board (MPOB) is scheduled to release its report on Monday on July's stocks and export positions.
Meanwhile, Interband Group of Companies senior palm oil trader Jim Teh anticipated the market to exhibit a "yo-yo effect", trading between RM3,600 and RM3,700 per tonne ahead of the MPOB report.
He added that physical demand remains stable, coming from China, India, Pakistan, the Middle East, the European Union countries, and the United States.
On a weekly basis, the August 2024 contract ended RM190 lower at RM3,831 tonne on Friday, while September declined RM169 to RM3,803 a tonne, October 2024 fell RM171 to RM3,746 a tonne, November 2024 decreased RM158 to RM3,723 a tonne, December 2024 retreated RM142 to RM3,717 a tonne, and January 2025 dropped RM122 to RM3,726 a tonne.
The total weekly volume decreased to 427,161 lots from 435,999 in the previous week, while open interest rose to 278,122 contracts from 218,654 a week earlier.
The physical CPO price for August South fell by RM150 to RM3,900 a tonne on Friday from RM4,050 at the end of the previous week.