KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is likely to remain in range-bound trading and stay between RM1,800 and RM1,900 level next week, with the prices expected to attract physical buyers.
Interband Group of Companies Senior Trader Jim Teh said the price would be attractive for physical buyers and would help reduce the commodity's inventory.
“Zero export levy imposed by the government for December would also act as a catalyst in pushing CPO into the global mart, not to mention, greater port efficiencies would also be of help in this case,” he said, adding that physical buyers were expected to be more aggressive ahead of festive season.
Teh added that, however, lower crude oil prices would post a challenge for CPO futures as investors would likely shift to the crude oil market due to its current prices.
Overall this week, CPO futures prices ended higher for the third consecutive day today after recording losses in the first two trading days.
On a Friday-to-Friday basis, December 2018 went up RM6 to RM1,872 a tonne, while January 2019 erased RM8 to RM1,970 a tonne, February 2019 fell RM4 to RM2,040 a tonne and March 2019 reduced RM2 to RM2,107 a tonne.
Weekly turnover rose to 227,037 lots from 218,619 lots last Friday, while open interest stood at 272,485 contracts from 286,892 contracts last week.
On the physical market, December South shed RM50 to RM1,860 a tonne. - Bernama
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