KUALA LUMPUR: Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are likely to trade within a tight range of between RM2,050 and RM2,150 a tonne next week on lack of fresh leads, said a dealer.
Interband Group of Companies senior trader Jim Teh said the market was awaiting the release of April's production, stocks and export data expected by the Malaysian Palm Oil Board (MPOB) on May 10.
"For the week, the decline in the Malaysian stockpile and expectations of higher demand for palm oil, particularly from Muslim countries as the fasting month approaches in May, is expected to support the price,” he told Bernama.
On Wednesday, Primary Industries Minister Teresa Kok Suh Sim said Malaysia had deferred export duty on crude palm oil from May 1 until Dec 31 this year, to enable the country to promote palm oil exports, as well as seek new markets.
On a Friday-to-Friday basis, spot month May 2019 declined RM113 to RM1,900 per tonne, June 2019 was RM111 easier at RM1,983 per tonne, July 2019 fell RM100 to RM2,010 per tonne and August 2019 declined RM98 to RM2,040 per tonne.
Weekly turnover rose to 174,862 lots from 170,831 lots in the previous week, while open interest increased to 274,256 contracts from 261,961 contracts.
On the physical market, May South stood at RM1,980 per tonne. - Bernama
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