CPO futures likely to trade lower next week
KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to trade lower on lack of fundamental cues.
Palm oil trader David Ng said there is also expectation of stronger output due to the seasonal factor which weighed down sentiment for local players to buy the commodity.
“We see support at RM3,650 per tonne and resistance at RM4,000 per tonne,” he told Bernama.
Meanwhile Fastmarkets Palm Oil Analytics managing editor Sathia Varqa said that next week’s trading would be based on the June supply and demand estimates from pollsters.
“The market players will be eyeing fresh leads which are June production and end month stocks,” he said.
For the week just ended, CPO futures traded higher tracking gains in soybean oil futures on the Chicago Board of Trade (CBOT), the lower ringgit versus the greenback as well as higher Indonesia export tax news.
On a weekly basis, July 2023 rose RM107 to RM3,751 per tonne, August 2023 climbed RM165 to RM3,794 per tonne, September 2023 earned RM169 to RM3,789 per tonne, October 2023 incrased RM167 to RM3,785 per tonne, November 2023 put on RM161 to RM3,791 per tonne and December 2023 soared RM154 to RM3,798 per tonne.
The total weekly volume slid to 212,304 lots from 266,502 lots while open interest tumbled to 237,110 contracts from 224,995 contracts on Friday last week.
The physical CPO price for July South was higher by RM150 to RM3,830 a tonne. – Bernama
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