KUALA LUMPUR: Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to trade in yo-yo mode this week in the absence of market participants due to new year holidays.
However, Interband group of companies senior palm oil trader Jim Teh said the commodity is expected to trade between RM3,400 per tonne and RM3,700 per tonne.
“We expect it to be like a yo-yo because international players are still on leave,” he told Bernama.
Commenting on the commodity performance for 2022, Teh said the palm oil showed a stellar performance despite the high level of inventories in Malaysia and Indonesia.
“As we compare the trend from 2007 until now, it has been on an uptrend, from RM1,500 per tonne to more than RM3,000 per tonne now,” he said, adding that CPO is the most profitable agriculture product in the country,” he added.
For the shortened trading week just ended, CPO futures were mostly higher tracking gains in the regional market as well as vegetable oil markets including soybean oil futures on the Chicago Board of Trade (CBOT).
On a weekly basis, January 2023 jumped RM369 to RM4,171 per tonne, February 2023 gained RM342 to RM4,162 per tonne, March 2023 was RM344 better at RM4,174 per tonne, April 2023 rose RM326 to RM4,159 per tonne, May 2023 increased RM310 to RM4,140 per tonne and June 2023 accumulated RM294 to RM4,109 per tonne.
Total weekly volume decreased to 183,061 lots from 238,001 lots in the previous week while open interest edged down further to 200,198 contracts from 207,324 contracts at the end of last week. The physical CPO price for January South stood at RM4,180 per tonne.
The market was closed on Dec 26 for the Christmas holiday and it will be closed on Jan 2, 2023 for the New Year holiday replacement day and would resume trading tomorrow.
