MARKET DEVELOPMENT
CPO Futures Likely To Trend Higher On Possible B10 Implementation
CPO Futures Likely To Trend Higher On Possible B10 Implementation
07/11/2016 (Bernama) - Crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives will likely trend higher in the RM2,600-RM2,700 range next week on possible implementation of the B10 programme next month.
Interband Group of Companies Senior Palm Oil Trader Jim Teh said market sentiment was lifted after news that implementation of the B10 programme (a petroleum diesel blend comprising 10 per cent palm methyl ester) would likely start next month.
“This will increase the country’s CPO consumption, thus lowering Malaysia’s inventory. “Full implementation of the B10 programme would consume 750,000 tonnes of palm oil a year,’’ he told Bernama.
For the week just ended, the commodity was traded mostly lower due to worries over rising inventory as a result of weak exports.
Cargo surveyor Intertek Testing Services said exports of Malaysian palm oil products for Oct 1-31, 2016 fell 6.4% to 1.28 million tonnes from 1.37 million tonnes during the Sept 1-30 period.
On a Friday-to-Friday basis, November 2016 fell RM38 to RM2,752 per tonne, December 2016 decreased RM47 to RM2,743 per tonne, January 2017 was RM52 lower at RM2,736 per tonne and February 2017 inched down RM54 to RM2,731 per tonne.
Weekly turnover fell to 185,624 lots from 242,004 lots recorded the previous week, while open interest widened to 223,517 contracts from 221,243 contracts previously.
On the physical market, November South was RM10 lower at RM2,810 per tonne from RM2,820 per tonne recorded the previous Friday.
Interband Group of Companies Senior Palm Oil Trader Jim Teh said market sentiment was lifted after news that implementation of the B10 programme (a petroleum diesel blend comprising 10 per cent palm methyl ester) would likely start next month.
“This will increase the country’s CPO consumption, thus lowering Malaysia’s inventory. “Full implementation of the B10 programme would consume 750,000 tonnes of palm oil a year,’’ he told Bernama.
For the week just ended, the commodity was traded mostly lower due to worries over rising inventory as a result of weak exports.
Cargo surveyor Intertek Testing Services said exports of Malaysian palm oil products for Oct 1-31, 2016 fell 6.4% to 1.28 million tonnes from 1.37 million tonnes during the Sept 1-30 period.
On a Friday-to-Friday basis, November 2016 fell RM38 to RM2,752 per tonne, December 2016 decreased RM47 to RM2,743 per tonne, January 2017 was RM52 lower at RM2,736 per tonne and February 2017 inched down RM54 to RM2,731 per tonne.
Weekly turnover fell to 185,624 lots from 242,004 lots recorded the previous week, while open interest widened to 223,517 contracts from 221,243 contracts previously.
On the physical market, November South was RM10 lower at RM2,810 per tonne from RM2,820 per tonne recorded the previous Friday.