MARKET DEVELOPMENT
CPO Expected To Trade Lower At Between RM2,150-RM2,200 A Tonne Next Week
CPO Expected To Trade Lower At Between RM2,150-RM2,200 A Tonne Next Week
22/06/2015 (Bernama) - The crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives are expected to hover lower between RM2,150 and RM2,200 next week due to softer commodity prices and weaker demand for the edible oil.
Interband Group of Companies Senior Palm Oil Trader Jim Teh said palm oil, which moves in tandem with soya bean oil, is likely to be on a downtrend next week.
He said that demand for edible oil in the world's second-largest grower, Malaysia, is expected to slow down as consumers from the Middle-East, Pakistan, China and India have stocked up supplies ahead of the Ramadan month.
"Due to this scenario, there will be higher inventories in palm oil producer countries, as Indonesia and Malaysia," he told Bernama.
Teh said, the players are also anxiously awaiting the cargo surveyor export data for overseas shipments of palm oil between June 1-20, due to be released next week, which would set fresh leads for the market.
However, he said any weakening of the ringgit may cushion the impact of the lower CPO price and lift demand.
On a weekly basis, July 2015 slipped RM22 to RM2,232 a tonne, August 2015 fell RM26 to RM2,236 a tonne, September 2015 was RM36 lower at RM2,237 a tonne and October 2015 declined RM38 to RM2,239 a tonne.
Weekly turnover decreased to 201,910 lots from 187,076 lots last week, while open interest narrowed to 222,931 contracts from 227,833 contracts previously.
On the physical market, July South slid RM30 to RM2,260 a tonne.
Interband Group of Companies Senior Palm Oil Trader Jim Teh said palm oil, which moves in tandem with soya bean oil, is likely to be on a downtrend next week.
He said that demand for edible oil in the world's second-largest grower, Malaysia, is expected to slow down as consumers from the Middle-East, Pakistan, China and India have stocked up supplies ahead of the Ramadan month.
"Due to this scenario, there will be higher inventories in palm oil producer countries, as Indonesia and Malaysia," he told Bernama.
Teh said, the players are also anxiously awaiting the cargo surveyor export data for overseas shipments of palm oil between June 1-20, due to be released next week, which would set fresh leads for the market.
However, he said any weakening of the ringgit may cushion the impact of the lower CPO price and lift demand.
On a weekly basis, July 2015 slipped RM22 to RM2,232 a tonne, August 2015 fell RM26 to RM2,236 a tonne, September 2015 was RM36 lower at RM2,237 a tonne and October 2015 declined RM38 to RM2,239 a tonne.
Weekly turnover decreased to 201,910 lots from 187,076 lots last week, while open interest narrowed to 222,931 contracts from 227,833 contracts previously.
On the physical market, July South slid RM30 to RM2,260 a tonne.