CPO futures to trend higher next week


KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to trade higher next week, buoyed by expectations of lower production in the coming weeks.

A dealer said traders are anticipating weaker production due to the monsoon season which could contribute to the reduction of stockpiles in the country.

"Furthermore, they would also be waiting for the Malaysia Palm Oil Board’s (MPOB) report to be released on Monday,” she told Bernama.

Recently, media citing a survey reported that Malaysia’s palm oil stockpile in December 2020 slumped to 1.18 million tonnes from November 2020, down 24 per cent, a likely 13-year low.

Meanwhile, Malaysian Palm Oil Association (MPOA) data also showed that CPO production in December 2020 eased 12.23 per cent to 1.3 million tonnes from November 2020.

For the week just ended, the CPO price was mostly higher, backed by firmer soybean oil prices as well as lower palm oil output and stockpiles.

On a weekly basis, CPO futures contract for January 2021 increased RM106 to RM3,997 per tonne, February 2021 rose RM210 to RM3,974 per tonne, March 2021 surged RM230 to RM3,830 per tonne, and April 2021 strengthened RM235 to RM3,709 per tonne.

Weekly volume jumped to 370,671 lots from 138,285 lots in the previous week, while open interest surged to 206,172 contracts from 196,440 contracts a week earlier.

The physical CPO price for January South gained RM160 to RM4,030 per tonne. - Bernama

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 18
Cxense type: free
User access status: 3

CPO , Weekly , Production , Palm oil , Monsoon Season

   

Did you find this article insightful?

Yes
No

100% readers found this article insightful

Next In Business News

China sets modest GDP growth target as economy improves
Ringgit lower on surging US bond yields
Quick take: BTM rises 5.8% on technical buy
JHM to post earnings growth on recovering demand
Hong Leong Bank props up KLCI amid cautious broader market
Quick take: O&G shares up as crude oil hit 1-year peak
Trading ideas: Sasbadi, MPHB Capital, Sunway, Lotte Chemical Titan
TSH to see core earnings growth in FY21, says Maybank IB
US 10-yr Treasury yield to hit 1.9% by year end
Japan plans to extend Tokyo area state of emergency to March 21

Stories You'll Enjoy


Vouchers