KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to trade between RM1,950 and RM2,050 a tonne next week.
Interband Group of Companies senior trader Jim Teh said the market is set to be in a yo-yo mode next week as rising tensions in the Middle East after two oil tankers were attacked in the Gulf of Oman and U.S.-China trade disputes have kept sentiment cautious.
"We hope the tensions will subside and offer relief to investors," he told Bernama.
He said the market is also cautiously waiting for the mid-June export data for further direction after Amspec Malaysia estimated June 1-10 palm oil exports at 376,802 tonnes, lower than the 550,785 tonnes recorded in the same period for May.
"The Middle East, India, Pakistan and China may not buy because Ramadan and the Raya period have ended.
"They had already bought one or two months ago, and that is why the exports were down," he added.
During the week, CPO was mostly trading lower, tracking movements of closely competing edible oils before ending the week unchanged on lack of interest.
On a Friday-to-Friday basis, June 2019 declined RM3 to RM2,000 a tonne, July 2019 fell RM14 to RM2,004 a tonne, August 2019 eased RM20 to RM2,008 a tonne and September 2019 decreased RM23 to RM2,015 a tonne.
Weekly turnover went up to 219,641 lots from 71,177 lots last week, while open interest rose to 258,863 contracts from 253,281 contracts previously.
On the physical market, June South eased to RM2,000 a tonne from RM2,020 a tonne last week. - Bernama