CPO to extend bearish trend on subdued demand


The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was up 1.25% at 2,028 ringgit ($492.59) per tonne at the close of trade in its third straight session of gains. Earlier in the session, it rose as much as 1.3% to 2,030 ringgit, its strongest levels since June 21.

KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to extend its bearish trend next week on subdued demand, trading at between RM1,900 and RM1,945 a tonne, said a dealer.

He said CPO production was expected to rise in the coming months, which would put pressure on stock levels in the country and keep the price on a downtrend.

"The local CPO also will be closely tracking the soyoil prices on the Chicago Board of Trade as both commodities compete for the same export destinations, their prices often moving in tandem,” he added.

During the week just ended, CPO traded lower, tracking movements of closely competing edible oils as well as of the ringgit versus the US dollar.

On a Friday-to-Friday basis, July 2019 fell RM133 to RM1,865 a tonne, August 2019 went down RM91 to RM1,920 a tonne, September 2019 decreased RM71 to RM1,951 a tonne and October 2019 retreated RM57 to RM1,983 a tonne. 

Weekly turnover dropped to 202,943 lots from 227,668 lots last week, while open interest advanced to 256,864 contracts from 248,844 contracts previously. 

On the physical market, July South stood at RM1,900 a tonne. - Bernama
Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 0
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!
   

Next In Business News

Intel slashes employee, exec pay amid PC market downturn
Stocks firm, dollar on edge ahead of Fed decision
Oil rises as U.S. recession fears ease and dollar slips
Japan factory activity shrinks for third month in January
Next big inflation surprise looming in China
Conglomerate turns to bane from boon for India’s stocks
Australia’s first coal shipments head to China since lifting of unofficial ban
Kantar appoints new senior leadership for Singapore and Malaysia
IMF raises 2023 forecast on Beijing reopening, strength in US, Europe
China EV upstart Xpeng pushes back profit goal

Others Also Read