Malaysian palm oil futures edged up at the close of trade on Friday, but remained largely caught in a range as demand remained tepid.
KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to trade range-bound at between RM1,920 and RM2,020 a tonne next week, amid uncertainty in the global economy.
Interband Group of Companies senior trader Jim Teh said the market however will be supported by expectation of lower inventory moving forward.
"The current price level is still considered attractive for the physical buyer to come in, which has resulted in the declining CPO stock recently," he told Bernama.
However, he said that traders were expected to remain cautious over the progress on the US-China trade negotiations next week.
During the week just ended, CPO was traded mixed, tracking movements of closely competing edible oils as well as the ringgit versus the US dollar.
On a Friday-to-Friday basis, July 2019 fell RM6 to RM1,998 a tonne but August 2019 went up RM3 to RM2,011 a tonne, September 2019 increased RM7 to RM2,022 a tonne and October 2019 gained RM1 to RM2,040 a tonne.
Weekly turnover increased to 227,668 lots from 219,641 lots last week, while open interest narrowed to 248,844 contracts from 258,863 contracts previously.
On the physical market, July South stood at RM2,020 a tonne. - Bernama
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