KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to maintain their upward trajectory next week due to the robust and persistent demand for palm oil, particularly from China.
Mumbai-based Sunvin Group commodity research head Anilkumar Bagani noted that China has made substantial purchases of refined bleached deodorized (RBD) palm olein, with around 48,000 tonnes bought for October at a price range of US$899-900 per tonne.
"Similarly, around 144,000 tonnes of RBD palm olein were traded on Thursday at US$898-900 per tonne. This heightened activity was complemented by the trade of about 15,400 tonnes of palm oil across China's cash markets,” he told Bernama, forecasting that CPO futures would trade between RM4,050 and RM4,130 next week.
For the week just ended, CPO futures traded mostly higher following the uptrend in soybean oil futures on the Chicago Board of Trade and the surge in Chinese vegetable oil futures in the Dalian Commodity Exchange.
On a weekly basis, the September 2023 contract inched up RM6 to RM3,860 per tonne, October 2023 added RM73 to RM3,937 and November 2023 increased RM91 to RM3,962.
December 2023 gained by RM104 to RM3,982 per tonne, January 2024 added RM108 to RM4,001 and February 2024 improved RM106 to RM4,014.
Total weekly volume eased to 270,241 lots from 285,007 in the preceding week and open interest rose to 200,992 contracts from 193,505 previously.
The physical CPO price for September South fell by RM20 to RM3,880 per tonne. - Bernama
