KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to consolidate further next week with bouts of profit-taking even though fundamental uptrend is strong due to lower output and lower stockpile.
Interband Group of Companies senior palm oil trader Jim Teh said the price would likely move between RM3,200 and RM3,300 per tonne.
"Most of the buyers buy when they need," he told Bernama.
Meanwhile, the Council of Palm Oil Producing Countries (CPOPC) is of the view that palm oil prices are likely to stay high in the first half of 2021, amid lower soybean crushing in Argentina and rising sunflower oil prices.
It said another key factor to watch is the weather pattern and the severity of La Nina going forward.
For the week-just-ended, CPO price was mostly higher, influenced by stronger performance in soya bean oil on China's Dalian Commodity Exchange and US Chicago Board Of Trade (CBOT).
The price swung from negative territory to positive as Indonesia sought to impose a higher levy on CPO starting mid-December, making Malaysia’s CPO more attractive.
The gains were in line with the uptrend in the physical price, which rose to more than a nine-year high.
On a Friday-to-Friday basis, the CPO futures contract for December 2020 increased RM140 to RM3,645 per tonne, January 2021 surged RM151 to RM3,552 per tonne, and February 2021 rose RM99 to RM3,437 per tonne while February 2021 added RM74 to RM3,338.
Weekly volume decreased to 282,610 lots from 347,718 lots in the previous week, while open interest was down to 240,256 contracts from 275,355 contracts a week earlier.
On the physical market, November South stood at RM3,690 per tonne. - Bernama
Interband Group of Companies senior palm oil trader Jim Teh said the price would likely move between RM3,200 and RM3,300 per tonne.
"Most of the buyers buy when they need," he told Bernama.
Meanwhile, the Council of Palm Oil Producing Countries (CPOPC) is of the view that palm oil prices are likely to stay high in the first half of 2021, amid lower soybean crushing in Argentina and rising sunflower oil prices.
It said another key factor to watch is the weather pattern and the severity of La Nina going forward.
For the week-just-ended, CPO price was mostly higher, influenced by stronger performance in soya bean oil on China's Dalian Commodity Exchange and US Chicago Board Of Trade (CBOT).
The price swung from negative territory to positive as Indonesia sought to impose a higher levy on CPO starting mid-December, making Malaysia’s CPO more attractive.
The gains were in line with the uptrend in the physical price, which rose to more than a nine-year high.
On a Friday-to-Friday basis, the CPO futures contract for December 2020 increased RM140 to RM3,645 per tonne, January 2021 surged RM151 to RM3,552 per tonne, and February 2021 rose RM99 to RM3,437 per tonne while February 2021 added RM74 to RM3,338.
Weekly volume decreased to 282,610 lots from 347,718 lots in the previous week, while open interest was down to 240,256 contracts from 275,355 contracts a week earlier.
On the physical market, November South stood at RM3,690 per tonne. - Bernama
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