KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to sustain its positive momentum on better demand this week.
According to palm oil trader David Ng, 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 waiting for palm oil production data from the Southern Peninsula Palm Oil Millers’ Association and Malaysian Palm Oil Association.
Last Friday, independent inspection company AmSpec Agri Malaysia stated that exports of Malaysian palm oil products from Oct 1-20 rose 7.9% 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.
