KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is likely to experience a technical correction after a strong rally recently.
Yesterday, the CPO futures rallied above RM4,200 a tonne for the October benchmark contract, the highest level in two months.
Singapore-based Palm Oil Analytics owner and co-founder Dr Sathia Varqa said the technical correction would be triggered by weak exports after the hefty gains made this week.
"Next week’s trading is expected to be in line with Malaysian Palm Oil Association production data,” he told Bernama.
Meanwhile, palm oil trader David Ng projected CPO prices to trade between RM4,100 and RM4,350 per tonne as the market search for clues on export performance due from cargo surveyors.
For the week just ended, Malaysian CPO futures ended mostly higher with traders’ decision continued to be driven by the export and production data.
On a weekly basis, August 2021 contracts rose RM242 to RM4,542 a tonne, September 2021 added RM201 to RM4,417 a tonne, October 2021 firmed RM134 to RM4,271 a tonne, November 2021 gained RM85 to RM4,154 a tonne and December 2021 increased RM54 to RM4,070 per tonne.
Weekly volume fell 247,352 from 346,774 lots in the previous trading week, while open interest reduced to 247,352 contracts versus 264,682 contracts previously.
The physical CPO price for July South advanced RM200 to RM4,560 a tonne on Friday. - Bernama