KUALA LUMPUR: Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are likely to trade in a yo-yo mode next week, mainly due to worries over the global economic slowdown, a dealer said.
Interband Group of Companies senior trader Jim Teh said the price would likely move between RM1,900 and RM1,930 per tonne.
"The market will probably move like a yo-yo and traders have been speculating about a downtrend in prices in the near term," he told Bernama.
Malaysia's total palm oil stocks in June 2019 fell one per cent to 2.42 million tonnes from 2.45 million tonnes in May 2019, according to the latest statistics from the Malaysian Palm Oil Board (MPOB).
CPO inventories decreased by 7.5 per cent to 1.35 million tonnes during the month under review from 1.46 million tonnes in the preceding month, while stocks of processed palm oil rose 8.7 per cent to 1.07 million tonnes from 984,053 tonnes previously.
Commenting on the performance over the last week, Teh said the market was on the downtrend for the past few days following sluggish exports data and bearish external factors.
On a Friday-to-Friday basis, July 2019 fell RM9 to RM1,900 a tonne, August 2019 went down RM22 to RM1,916 a tonne, while September 2019 and October 2019 decreased RM16 each to RM1,944 and RM1,973 a tonne, respectively.
Weekly turnover rose to 230,488 lots from 212,264 lots last week, while open interest slipped to 270,228 contracts from 272,432 contracts previously.
On the physical market, July South stood at RM1,890 a tonne. – Bernama
Win a prize this Mother's Day by subscribing to our annual plan now! T&C applies.
