KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is anticipated to experience an upward trend in the coming week influenced by the prevailing positive sentiment due to the strengthened prices of crude oil and soybean oil.
Palm oil trader David Ng said the market is likely to encounter support at RM3,700, indicating a price point where the market might find stability or potential buying interest.
"Conversely, a resistance level around RM4,100 suggests a potential hurdle for further upward movement,” he told Bernama.
For the week just ended, CPO futures experienced predominantly positive trading conditions, primarily due to lower stock levels and the overall strength observed in the Chicago Board of Trade (CBOT) soybean oil market.
On a weekly basis, July 2023 increased RM61 to RM3,818 per tonne, August 2023 went up RM30 to RM3,844 per tonne and September 2023 improved RM47 to RM3,881 per tonne.
October 2023 strengthen RM50 to RM3,899 per tonne, November 2023 enhanced RM48 to RM3,908 per tonne but December 2023 was RM54 lower at RM3,820 per tonne.
The total weekly volume declined to 270,001 lots from 338,013 lots while open interest increased to 190,758 from 181,912 contracts last Friday.
The physical CPO price for July South was up RM50 to RM3,880 a tonne. - Bernama
