KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to see technical rebound next week after experiencing heavy losses over the previous week.
Singapore-based Palm Oil Analytics’ owner and co-founder Dr Sathia Varqa said next week’s market would also likely be supported by healthy export numbers and recovery in crude oil prices.
"The local CPO market is anticipated to trade based on March 2021 full month fundamentals and United States Department of Agriculture (USDA) prospective planting data next week,” he told Bernama.
Meanwhile, palm oil trader David Ng projected CPO prices to trade within a tight range with an upward bias next week, lifted by better export sentiment.
Data from independent inspection company, AmSpec Agri Malaysia released on Thursday showed that exports of Malaysian palm oil products for the first 25 days of March 2021 stood at 1,017,730 tonnes, increasing 10.4 per cent from 921,929 tonnes shipped during Feb 1-25, 2021.
For the week just ended, the market was traded mostly lower, tracking the weaker performance of soybean oil prices and prospects of higher production in the coming weeks.
On a weekly basis, CPO futures contracts for April 2021 increased RM12 at RM4,025 per tonne, May 2021 added RM9 to RM3,864 per tonne, June 2021 declined RM32 to RM3,692 per tonne and July 2021 dipped RM50 to RM3,563 per tonne.
Weekly volume decreased to 327,332 lots from 376,496 lots the previous week, while open interest increased to 268,778 contracts from 256,905 contracts a week earlier.
The physical CPO price for April South remained unchanged at RM4,050 per tonne. - Bernama