KUALA LUMPUR: Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are likely to trade within a tight range of between RM1,900 and RM1,920 a tonne next week on trade war strain, said a dealer.
Interband Group of Companies senior trader Jim Teh said the world market is in a state of instability as the trade war between the US and China is also affecting the commodity market.
"The world economy is down due to the trade tensions between the two giants,” he told Bernama.
According to a Chinese central bank adviser, plans by Washington to hike tariffs on US$200 billion of Chinese goods could cut China's growth by 0.3 percentage point but the strengthening economy has become more resilient to external shocks.
Meanwhile, he said US oil prices rose on Friday on renewed optimism that a trade deal between Washington and Beijing could be struck, as investors have been fearing that a protracted tariff war would harm global economic growth.
On a Friday-to-Friday basis, spot month May 2019 rose RM20 to RM1,920 per tonne, while June 2019 was RM32 easier at RM1,951 per tonne, July 2019 fell RM27 to RM1,983 per tonne and August 2019 declined RM32 to RM2,008 per tonne.
Weekly turnover rose to 212,192 lots from 174,862 lots in the previous week, while open interest increased to 260,566 contracts from 274,256 contracts.
On the physical market, May South stood at RM1,950 per tonne. - Bernama