KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to trade lower this week on the back of weaker demand.
Palm oil trader David Ng said that this was after it ended the week lower after starting on an upbeat momentum, reaching an eight-month high on Thursday.
"Higher stockpiles are expected as a result of weaker demand," he said.
Plantation related stocks have also ended the week lower in line with lower CPO pricing.
On the technical aspect, Ng said the CPO price was expected to trade between RM2,750 and RM2,900 a tonne with an overall negative bias as export performance was anticipated to be sluggish.
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.
The market was closed on Monday in conjunction with the National Day.
On a Friday-to-Friday basis, the CPO futures contract for September 2020 rose RM87 to RM2,932 per tonne, October 2020 added RM113 to RM2,892 per tonne, November 2020 gained RM97 to RM2,835 per tonne, and December 2020 climbed RM86 to RM2,797 per tonne.
Weekly volume decreased to 213,212 lots from 229,701 lots in the previous week, while open interest rose to 238,535 contracts from 233,230 contracts a week earlier.
On the physical market, September South rose RM90 to RM2,950 per tonne. - Bernama
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