CPO futures seen trading higher next week on improved sentiment, may hit RM5,050


KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to trade higher next week on improved sentiment, a dealer said.

Palm oil trader David Ng said CPO futures are expected to trade above RM4900 as sentiment remains bullish due to strong fundamentals.

"We expect the support price will be at the RM4,700 level and resistance at RM5,050 for next week," he told Bernama.

Ng's opinion was also echoed by Singapore-based Palm Oil Analytics owner and co-founder Sathia Varqa, who agreed that CPO futures might inch higher next week on hopes of export demand recovery.

On Wednesday, the local CPO futures contract rallied to a new all-time high of RM5,021 per tonne for the December benchmark contract after the Indian government announced a cut in import duties for edible oils effective from Oct 14, 2021 to Mar 31, 2022.

With the cuts, the effective import duty on CPO will fall from 24.75 per cent to 8.25 per cent, while the effective import duty on refined grades of palm oil will fall from 35.75 per cent to 19.25 per cent.

For the week just ended, Malaysian CPO futures finished mostly lower on concerns over lower export data and profit-taking activities.

On a Friday-to-Friday basis, October 2021 increased RM8 to RM5,160 a tonne, November 2021 gained RM14 to RM5,099 a tonne, while December 2021 was RM5 lower at RM4,961 a tonne.

January 2022 declined RM10 to RM4,859 a tonne, February 2022 eased RM2 to RM4,768 a tonne, and March 2022 gained RM4 to RM4,664 a tonne.

Weekly volume declined to 318,865 lots from 321,957 lots in the previous trading week, while open interest fell to 259,341 contracts from 272,276 contracts previously.

The physical CPO price for October South was RM140 higher at RM5,160 a tonne. - Bernama

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

   

Next In Business News

Business summary from Nov 22-28
GLOBAL MARKETS-Stocks, oil regain some composure after Omicron battering
Telekom, Vodafone, others want U.S. tech giants to help fund network costs
Fashion world grieves after death of Louis Vuitton's Virgil Abloh
Australia's reopening plans in doubt after Omicron cases
Opec postponses technical meetings to evaluate Omicron impact
Emergence of new shareholder in G3 Global
CPTPP will not affect bumiputra rights, says Azmin
Insight: Today’s board – Tomorrow’s issues
Insight - Bursa Malaysia sees continued interest

Others Also Read


Vouchers