KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is likely to trade in a tight range of between RM2,010 and RM2,100 per tonne next week, said a dealer.
Interband Group of Companies senior trader Jim Teh said market sentiment was affected by India’s move to raise the tax on refined palm oil from Malaysia.
"The market will be trading in a tight range next week, due to also the holiday-shortened trading week, ” he told Bernama.
The market will be closed on Monday in conjunction with Malaysia Day. The market will resume trading on Tuesday.
India recently raised the tax on refined palm oil from Malaysia to 50 per cent from 45 per cent for six months to reduce imports and strengthen local refining.
The country, the world’s biggest edible oil importer, currently imposes a 40 per cent import tax on crude palm oil and 50 per cent on refined palm oils.
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 rising concerns over weaker exports in the coming weeks.
On a Friday-to-Friday basis, CPO futures contracts for September 2019 and November 2019 declined RM11 to RM2,105 per tonne and RM2,190 per tonne respectively, while October 2019 fell RM8 to RM2,160 per tonne and December 2019 eased RM17 to RM2,221 per tonne.
Weekly turnover narrowed to 218,151 lots from 222,973 lots in the previous week, while open interest was higher at 229,870 contracts from 216,532 contracts.
On the physical market, the CPO price for September South eased RM20 to RM2,120 per tonne from RM2,140 per tonne.
The market was closed on Monday in conjunction with the birthday of the Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah. - Bernama