CPO futures likely to stay at above RM2,000 a tonne next week

  • Business
  • Saturday, 18 May 2019

At Monday's close, the benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange was down 3.9 percent at 1,965 ringgit ($469.42) a tonne. That was its biggest one-day dip since Feb. 16 last year. Traded volumes stood at 53,531 lots of 25 tonnes each.

KUALA LUMPUR: Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are likely to trade between RM2,000 and RM2,050 a tonne next week on demand from China, India, Pakistan and the Middle East, said a dealer.

Interband Group of Companies senior trader Jim Teh said demand from the countries is likely to be sustained ahead of the Aidilfitri celebration in early June.

However, he added that the market is also cautious on the escalating trade tension between the United States and China.

"The trade tension is likely to affect demand for commodities and the global economic environment,” said Teh.   

On a Friday-to-Friday basis, spot month June 2019 jumped RM98 to RM2,049, July 2019 strengthened by RM99 to RM2,082 a tonne, August 2019 went up by RM90 to RM2,098 a tonne and September 2019 appreciated RM87 to RM2,120 a tonne.

May 2019 expired at RM1,957 a tonne on Wednesday.  

Weekly turnover increased to 239,374 lots from 212,192 lots in the previous week, while open interest increased to 270,750 contracts from 260,566 contracts previously.

On the physical market, May South increased RM80 to RM2,030 per tonne. - Bernama

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CPO , palm oil


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