KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is likely to undergo a technical correction next week after its strong rally recently.
Yesterday, the CPO futures hit a fresh all-time high at above RM4,400 a tonne for the July benchmark contract.
Singapore-based Palm Oil Analytics owner and co-founder Dr Sathia Varqa had projected a combination of profit-taking, cautious trading, and price correction in the shortest trading week in the year with only two-and-a half days.
"Trading will be guided by the Malaysian Palm Oil Board (MPOB) data which is due on Monday,” he told Bernama.
For the week just ended, Malaysia’s CPO futures market was traded mostly higher in line with the stronger soybean oil performance on the US Chicago Board of Trade (CBOT), as well as concerns over weak production in the country.
On a Friday-to-Friday basis, the CPO futures contracts were higher, with May 2021 increasing RM475 to RM4,883 per tonne, June 2021 and July 2021 rose RM559 to RM3,678 per tonne and RM4,427 per tonne respectively, while August 2021 improved RM514 to RM4,217 per tonne.
Weekly volume strengthened to 281,343 lots from 233,335 lots in the previous week, while open interest climbed to 277,416 contracts from 258,464 contracts a week earlier.
The physical CPO price for May South jumped RM410 to RM4,830 per tonne. - Bernama
