CPO futures seen trading with upward bias next week

KUALA LUMPUR: Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is likely to trade on an upward bias next week, said a dealer.

Palm oil trader David Ng told Bernama that the support is located at RM4,800 a tonne and resistance at RM5,150 a tonne.

"The price is expected to remain steady in the near term supported by tight inventory supply,” he said.

Another dealer said the weaker production period has caused anxiety among market participants while higher demand from China due to restocking activities would continue to boost exports.

Malaysian CPO futures initially finished higher on tightened inventories and limited capacity for exports during last week’s holiday-shortened week.

On a Friday-to-Friday basis, November 2021 increased RM214 to RM5,402 a tonne, and December 2021 gained RM191 to RM5,227 a tonne.

January 2022 was RM102 higher at RM5,026 a tonne, February 2022 rose RM56 to RM4,881 a tonne, March 2022 climbed RM39 to RM4,755 a tonne, and April 2022 increased RM37 to RM4,632 a tonne.

Weekly volume improved to 279,164 lots from 278,736 lots in the previous trading week, while open interest narrowed to 245,276 contracts from 260,656 contracts previously.

The physical CPO price for November South was RM220 higher at RM5,450 a tonne. - Bernama