CPO futures to see range-bound trading next week

  • Commodities
  • Saturday, 15 Aug 2020

KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is likely to trade range-bound next week at between RM2,600 and RM2,750 per tonne, said a dealer.

Palm oil trader David Ng said the market would likely remain quiet due to lack of fresh leads.

"I do not see much of fundamental catalyst next week that can drive prices higher but the market will pay close attention to export numbers released by cargo surveyors on Monday,” he told Bernama.

For the week just ended, the CPO futures contract traded mostly lower due to the prospect of higher production in the coming weeks and the downtrend in soybean oil futures on the Chicago Board of Trade (CBOT) as well as the Dalian Commodity Exchange.

On a Friday-to-Thursday basis, the CPO futures contract for August 2020 fell RM82 to RM2,803 per tonne, September 2020 declined RM67 to RM2,757 per tonne, October 2020 eased RM72 to RM2,686 per tonne, and November 2020 slipped RM69 to RM2,647 per tonne.

Weekly volume surged to 294,006 lots from the previous week's 221,137 lots, while open interest perked to 241,736 contracts from 221,137 contracts a week earlier.

On the physical market, August South contracted RM70 to RM2,720 per tonne. - Bernama
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