KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to sustain its positive momentum next week on better demand.
According to palm oil trader David Ng, next week's trading would be on a firm note, with support coming from expectations that the country's exports would increase, keeping the market's positive sentiment intact.
"We expect this positive momentum to sustain as the recent weakness in the ringgit also attracted buying interest. We expect next week's price to trade between RM3,650 and RM3,900 per tonne,” Ng told Bernama.
Meanwhile, Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said market players are now waiting for palm oil production data from the Southern Peninsula Palm Oil Millers' Association and Malaysian Palm Oil Association.
On Friday, independent inspection company AmSpec Agri Malaysia stated that exports of Malaysian palm oil products for Oct 1-20 rose 7.9 per cent to 885,888 tonnes from 821,408 tonnes shipped from Sept 1-20.
For the week just ended, CPO futures were traded mostly higher, tracking the movement of the soyabean oil market, crude oil prices, stronger export data, and a softer currency.
On a weekly basis, November 2023 increased by RM2 to RM3,716 per tonne, December 2023 rose RM13 to RM3,750 per tonne, and January 2024 gained RM12 to RM3,771 per tonne.
February 2024 bagged RM14 to RM3,789 per tonne, March 2024 was RM19 better at RM3,805 per tonne, and April 2024 increased RM15 to RM3,799 per tonne.
Total weekly volume narrowed to 318,566 lots from 389,693 lots in the preceding week, while open interest weakened to 224,055 contracts from 230,163 contracts previously.
The physical CPO price for November South rose RM20 to RM3,740 per tonne from RM3,720 per tonne in the previous week. - Bernama
