CPO futures to trade at RM1,950 - RM2,050 a tonne next week

  • Business
  • Saturday, 15 Jun 2019

The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange fell 0.6 percent at 2,588 ringgit ($637.44) a tonne at the end of trading, a fourth day of losses out of five. Earlier in the session, the contract hit its strongest level since Nov. 24 at 2,625 ringgit. Traded volumes stood at 34,067 lots of 25 tonnes each on Monday evening.

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

CPO , palm oil


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