KUALA LUMPUR: Crude palm oil (CPO) futures on Bursa Malaysia Derivatives is likely to see range-bound trading next week, while trailing soyoil's performance on the Chicago Board of Trade (CBOT), said a dealer.
Palm oil trader David Ng told Bernama the market would likely be subdued next week as players would withhold demand amid geopolitical uncertainties of the US-China trade debacle.
On new developments of the trade dispute, he said the surprise move by US President Donald Trump on Thursday to impose new tariffs on Chinese imports had stirred in the market.
It was reported that Trump planned to impose a 10 per cent tariff on US$300 billion of Chinese imports from Sept 1, 2019, and could raise the tariffs further if China's President Xi Jinping failed to move more quickly to strike a trade deal.
For the week-just-ended, the CPO futures were traded higher, influenced by the movement of soybean, the weaker ringgit against the US dollar, as well as the expectation of higher exports in coming months.
On a Friday-to-Friday basis, August 2019 rose RM17 to RM2,013 per tonne, September 2019 was unchanged at RM2,032 per tonne, October 2019 improved RM5 to RM2,062 a tonne, while November 2019 eased RM10 to RM2,093 per tonne.
Weekly turnover decreased to 141,590 lots from 232,276 lots in the previous week, while open interest was lower at 238,131 contracts from 274,926 contracts previously.
On the physical market, CPO price rose RM100 to RM2,010 a tonne. - Bernama
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