CPO futures expected to trade upwards between RM3,300 and RM3,700 next week
20.05.2023 (The Star) - KUALA LUMPUR: Crude palm oil (CPO) futures on the Bursa Malaysia Derivatives market are expected to trade with an upward bias of between RM3,300 and RM3,700, according to a trader.
Palm oil trader David Ng said Malaysia’s palm oil export activities are expected to be on the upside as China increases its purchase of palm oil next week.
"We locate the support level at RM3,350 and resistance at RM3,700," he told Bernama.
Meanwhile, Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said CPO futures are expected to trade in a wider range of RM3,300 to RM3,600 next week due to volatility in competing vegetable oils such as soybean oil and sunflower oil.
For the week just ended, CPO futures were traded lower on weaker soybean oil prices on the Chicago Board of Trade, lower crude oil prices, higher palm oil production estimates and a lack of buying interest from importing countries.
On a weekly basis, the June 2023 contract was RM103 lower to RM3,725 a tonne, July 2023 slipped RM59 to RM3,589 and August 2023 decreased RM71 to RM3,481.
The September 2023 contract dropped RM56 to RM3,455 a tonne, October 2023 fell RM39 to RM3,456 and November 2023 was RM31 down to RM3,458
Total weekly volume fell to 352,098 lots from 407,184 lots, while open interest was lower at 201,387 contracts from 250,832 contracts last Friday.
The physical CPO price for June South was down by RM150 to RM3,750 a tonne. - Bernama