Palm oil trader David Ng said market players are widely anticipating weaker production in the coming weeks, judging from Southern Peninsula Palm Oil Millers' Association's (SPPOMA) data which showed local CPO production fell 6.65 per cent for Sept 1-5, 2019 versus the first five days of August 2019.
"Besides, as China has started to stock up on the commodity before winter arrives, exports to the republic are anticipated to pick up next week," he told Bernama.
During the holiday-shortened week, the CPO futures traded mixed, mainly influenced by the movement of the ringgit versus the US dollar, soybean oil prices, as well as India's move to raise the tax on Malaysian refined palm oil to 50 per cent from 45 per cent until March 2, 2020 to curb imports and boost local refining.
On a Friday-to-Friday basis, CPO futures contracts for September 2019 dropped RM52 to RM2,116 per tonne, October 2019 fell RM42 to RM2,168 per tonne, November 2019 slipped RM33 to RM2,201 per tonne and December 2019 shed RM18 to RM2,238 per tonne.
Weekly turnover narrowed to 222,973 lots from 247,132 lots in the previous week, while open interest was lower at 216,532 contracts against 217,613 contracts previously.
On the physical market, the CPO market for September South fell RM30 to RM2,140 per tonne from RM2,170 per tonne previously.
The market was closed last Monday for the extended Awal Muharram holiday, and it will also be closed next Monday in conjunction with the birthday of the Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah.
The market will resume trading on Tuesday. - Bernama
Did you find this article insightful?