Interband Group of Companies senior palm oil Trader Jim Teh said the prices were previously driven to the current significant point which is deemed to experience a correction.
"CPO prices will trade between RM2,600 and RM2,700 next week,” he told Bernama today.
Another dealer said palm oil is affected by price movements in rival oils as they compete for a share in the global vegetable oil market.
Meanwhile, CGS CIMB, in a note, said that palm oil extended gains on expectations that a five-day rally in rival soybean oil will prompt some buyers to switch to the tropical oil.
Futures surged 1.3 per cent after climbing 1.2 per cent on Wednesday.
The most-consumed edible oil gained almost 17 per cent so far this quarter on hopes about a recovery in purchases by key buyers and concerns about a drop in production.
"The palm oil market is following firm soyoil that’s rising on China’s demand and expectations of weaker US soybean yields due to a dry weather,” it said.
For the week just ended, the CPO futures contract traded higher except for Friday, taking the cue from soybean oil prices on the Chicago Board of Trade, Dalian Commodity Exchange and movement of the ringgit against the US dollar.
On a Friday-to-Friday basis, the CPO futures contract for September 2020 rose RM47 to RM2,845 per tonne, October 2020 added RM58 to RM2,779 per tonne, November 2020 gained RM57 to RM2,738 per tonne, and December 2020 added RM56 to RM2,711 per tonne.
Weekly volume increased to 229,701 lots from the previous week's 211,993 lots, while open interest trimmed to 233,230 contracts from 237,675 contracts a week earlier.
On the physical market, September South rose RM50 to RM2,860 per tonne. - Bernama
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