KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to be on cautious trading next week as Indonesia plans to lift its export ban on palm oil from May 23, said a dealer.
Palm oil trader David Ng said he expected prices next week to trade between RM5,900 a tonne and RM6,600 a tonne as robust exports continue to support prices going forward.
Singapore-based Palm Oil Analytics’ owner and co-founder Sathia Varqa said trading will be focused on details of Indonesia’s export and domestic policy and its impact on CPO futures on Bursa Malaysia.
On Friday, Indonesia, the world’s biggest palm oil producer, said it would reimpose a domestic sales requirement on palm oil a day after the country reversed a ban on its export. This is to ensure 10 million tonnes of cooking oil remains at home.
On a Friday-to-Friday basis, new spot month June 2022 fell RM35 to RM6,647 a tonne, July 2022 dipped RM73 to RM6,296 a tonne, August 2022 was RM67 lower at RM6,072 a tonne, September 2022 reduced RM47 to RM5,973 a tonne, and October 2022 eased RM53 to RM5,917 a tonne.
New contract month November 2022 stood at RM5,894 a tonne.
Weekly volume surged to 269,576 lots from 263,529 lots last week, while open interest increased to 315,480 contracts from 203,624 contracts previously.
The physical CPO price for May South fell by RM150 to RM6,750 a tonne. - Bernama
