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The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to trade with a slight upward bias next week due to stronger demand, said a trader.
According to palm oil trader David Ng, estimates by inspection company Intertek Testing Services (ITS) put Malaysian palm oil exports for May 1-25 higher by 1.37 per cent to 1.12 million tonnes from 1.10 million tonnes during April 1-25.
“We expect prices to trade between RM3,800 and RM4,000 next week because of stronger demand,” he told Bernama.
Ng said the market will be monitoring export estimates by cargo surveyor Societe Generale de Surveillance’s (SGS) on Monday.
For the week just ended, CPO futures were traded mixed mainly due to stronger Chicago Board of Trade soybean oil prices and the expectation of rising output in the coming weeks.
On a weekly basis, the spot month June 2024 contract eased RM23 to RM3,872 a tonne, July 2024 edged down RM15 to RM3,879 a tonne, August 2024 Was RM7 lower at RM3,885 a tonne, September 2024 inched down RM2 to RM3,893 a tonne.
However, October 2024 went up by RM4 to RM3,903 a tonne and November 2024 improved by RM12 to RM3,918 a tonne.
Total weekly volume declined to 249,988 lots from 331,614 lots in the previous week, while open interest fell to 202,898 contracts from 204,710 contracts a week ago.
The physical CPO price for June South decreased by RM30 to RM3,920 a tonne from RM3,950 a tonne in the preceding week.
Source: Bernama
