KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to trade lower next week with prices ranging between RM1,900 and RM1,950 per tonne amid expectations of a stronger ringgit against the US dollar.
Interband Group of Companies senior trader Jim Teh said lower CPO prices would probably attract buyers.
"However, the ongoing trade tension between the United States and China is likely to affect demand for commodities,” he said.
Teh said market players were monitoring the CPO stockpile and May production figures to be released by the Malaysian Palm Oil Board next week.
The market was mostly lower during the holiday-shortened week. It was closed on Wednesday and Thursday for the Hari Raya Aidilfitri celebration, and trading resumed on Friday.
On a Friday-to-Friday basis, June 2019 declined RM27 to RM2,003 a tonne, July 2019 fell RM36 to RM2,018 a tonne, August 2019 eased RM41 to RM2,028 a tonne and September 2019 decreased RM45 to RM2,038 a tonne.
Weekly turnover went down to 71,177 lots from 146,737 lots last week, while open interest rose to 253,281 contracts from 243,749 contracts previously.
On the physical market, June South eased to RM2,020 a tonne from RM2,030 a tonne last week. - Bernama
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