KUALA LUMPUR: Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is anticipated to experience cautious trading this week as market participants zero in on the United States Federal Reserve’s interest rate decision on Wednesday, according to an analyst.
Fastmarkets senior analyst Dr Sathia Varqa said the potential decision to increase the interest rate would have implications on emerging market currencies including the ringgit.
“However, the rising month-on-month production from Malaysia aided by good weather and high stocks in importing countries will keep exports rising at a slower pace,” he told Bernama.
On whether the CPO futures market would remain above RM4,000 per tonne, the analyst noted that prices would not stay between the RM4,000 and RM4,100-level for long due to weak fundamentals.
The market will also be monitoring the development of the Black Sea grain deal this week, according to another dealer.On a weekly basis, August 2023 jumped RM149 to RM3,993 per tonne and September 2023 improved RM136 to RM4,017 per tonne.
