KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to trade higher next week on expectation of higher equity and commodity prices supported by the US stimulus package bill worth about US$2 trillion.
Singapore-based Palm Oil Analytics’ owner and co-founder Dr Sathia Varqa said Asian equities ended broadly higher on Friday due to the US stimulus package proposed by the Democrats on Thursday.
"Equities markets love to jump at this kind of money and we expect higher equities and commodities next week would propel the local CPO futures,” he told Bernama.
For next week, Sathia said palm oil market players would focus on Malaysia’s full-month export estimates and production outlook for September 2020.
He added that buying from China would be quiet as the country winds down for Golden Week Festival from Oct 1-7, 2020.
Over the past week, the CPO futures prices were mainly influenced by soybean oil prices on the Dalian Exchange, the movement of the ringgit as well as the cargo surveyors data released on Friday.
On a Friday-to-Friday basis, the CPO futures contract for October 2020 declined RM172 to RM2,930 per tonne, November 2020 retreated RM228 to RM2,872 per tonne, December 2020 narrowed RM258 to RM2,822 per tonne, and January 2021 was RM253 lower at RM2,792 per tonne.
Weekly volume jumped to 347,001 lots from 266,099 lots in the previous week, while open interest declined to 253,795 contracts against 260,786 contracts a week earlier.
On the physical market, October South stood at RM2,940 per tonne. - Bernama
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