KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is likely to trade in a profit-taking mode of between RM2,020 and RM2,080 per tonne next week, said a dealer. Interband Group of Companies senior trader Jim Teh said market sentiment was affected by US-China trade war and last week’s attacks on Saudi Arabian oil facilities.
"The market will be trading in a profit-taking mode next week,” he told Bernama. However, Teh said the country’s CPO stockpile has been reduced to 2.2 million tonnes, and production figures for September 2019 and October 2019 are promising, which could lead to better CPO prices.
On a Friday-to-Friday basis, CPO futures contracts for October 2019 inched up RM1 to RM2,161 per tonne, November 2019 added RM2 to RM2,192 per tonne, December 2019 rose RM4 to RM2,225 per tonne and January 2020 improved RM11 to RM2,261 per tonne.
Weekly turnover narrowed to 185,608 lots from 218,151 lots in the previous week, while open interest was higher at 230,310 contracts from 229,870 contracts.
On the physical market, the CPO price for September South increased RM10 to RM2,130 per tonne from RM2,120 per tonne. - Bernama