The Star Online (07/06/2021) - KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is forecast to trade with a downside bias ahead of a slew of market-moving data to be released this week.

The Malaysian Palm Oil Board (MPOB) is expected to release production, stocks as well as export data for May that are set to influence the overall market performance.

End-month inventory is expected to be higher, according to Singapore-based Palm Oil Analytics owner and co-founder, Dr Sathia Varqa.

This week is a four-day trading week with blockbuster data to be released by MPOB, the Malaysian Palm Oil Association (MPOA) and United States Department of Agriculture as well as June 1-10 figures by cargo surveyors.
“In addition, the Indonesian government will make a decision on export levy, ” he told Bernama.Palm oil trader David Ng projected the key psychological support to remain at the RM4,000 level.

For the week just ended, the market was mostly lower on the back of weaker soybean oil prices, amid worries over stocks position, rising Covid-19 cases and the lockdown.

CPO futures were higher on last Wednesday and Thursday before ending the week lower as investors booked profits ahead of the long holiday weekend and due to the bearish soybean market after the commodity hit its 10-year high during the previous session.

In a note recently, CGS-CIMB said Covid-19 cases were indirectly impacting productivity at the estates due to the delay in allowing the return of 32,000 foreign workers. — Bernama

Read more at https://www.thestar.com.my/business/business-news/2021/06/07/cpo-futures-likely-to--trade-with-downside-bias