CPO futures set to trade lower on profit-taking next week
17/06/2023(The Star Online), Kuala Lumpur - The local crude palm oil (CPO) futures market is expected to trend lower next week on profit-taking activities.
Palm oil trader David Ng expects profit-taking to happen after the recent rally due to the bullish momentum on the Chicago Board of Trade’s (CBOT) soybean oil market and the weaker local currency.
"As such, the price movement next week is expected to hover between RM3,550 and RM3,800 per tonne,” he told Bernama.
For the week just ended, CPO futures traded higher, tracking soybean oil futures on the CBOT, the lower ringgit versus the greenback as well ongoing concerns over decreased production due to El Nino.
On a weekly basis, the July 2023 contract added RM377 to RM3,785 per tonne, August 2023 rose RM399 to RM3,766 and September 2023 advanced RM377 to RM3,743.
The October 2023 note expanded RM359 to RM3,738 per tonne while November 2023 garnered RM346 to RM3,742 per tonne and December 2023 gained RM368 to RM3,380 per tonne.
The total weekly volume surged to 342,040 lots from 235,769 lots while open interest advanced to 303,471 contracts from 265,572 contracts on Friday last week.
The physical CPO price for June South was higher by RM350 to RM3,800 a tonne. - Bernama