KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to trade with an upward bias next week, a dealer said. Palm oil trader David Ng said concerns about weaker output and recent robust demand would continue to lift sentiment.
“We expect prices to move between RM4,500 and RM4,800 per tonne next week,” he told Bernama.
Meanwhile, Interband Group of Companies senior palm oil trader Jim Teh said the market was expected to experience a technical correction next week due to closing of year-end accounts and the holiday season.
He projected the commodity to trade between RM4,200 and RM4,300 per tonne next week. Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said next week palm oil prices were expected to stay range-bound amid the December supply and demand previews and year-end phenomenon.
For the week just ended, Malaysian CPO futures finished mostly higher, tracking stronger soybean oil performance on the Chicago Board of Trade and expectation of weaker output in the coming weeks.
On a Friday-to-Friday basis, January 2022 increased RM246 to RM5,121 a tonne, February 2022 gained RM239 to RM4,865 a tonne, March 2022 improved RM245 to RM4,649 a tonne, and April 2022 was higher by RM241 at RM4,483 a tonne.
Meanwhile, May 2022 rose RM228 to RM4,358 a tonne and June 2022 climbed RM225 to RM4,265 a tonne. Weekly volume fell to 231,382 lots from 385,756 lots last week, while open interest slipped to 260,550 contracts from 260,897 contracts previously.
The physical CPO price for January South jumped RM180 to RM5,100 a tonne. – Bernama
Source: The Star