KUALA LUMPUR: The crude palm oil (CPO) futures on Bursa Malaysia Derivatives are projected to trend lower next week as the weaker soybean oil market on the Chicago Board of Trade (CBOT) continues to dampen sentiment in the palm oil market, said a dealer.
Palm oil trader David Ng said the expectation of a rising stock level in the country would also contribute towards a weaker market sentiment.
"Expectation of stronger output and higher stock level will put pressure on prices. Markets expect to watch the export pace from cargo surveyors next week.
"We predict prices to trade lower with support at RM3,600 and resistance at RM3,850 next week,” he told Bernama.
For the week just ended, CPO futures were traded mostly lower following the weakness in soybean oil futures on CBOT and lower crude oil prices.
On a weekly basis, the October 2023 contract slid RM82 to RM3,647 per tonne, November 2023 fell RM126 to RM3,659 per tonne, December 2023 erased RM149 to RM3,681 per tonne, January 2024 declined RM156 to RM3,715 per tonne, February 2024 dropped RM169 to RM3,741 per tonne and March 2024 decreased RM168 to RM3,766 per tonne.
Total weekly volume increased to 326,641 lots from 325,799 lots in the preceding week, and open interest strengthened to 214,965 contracts from 203,441 contracts previously.
The physical CPO price for October South slid RM50 to RM3,700 per tonne from RM3,750 per tonne in the previous week. - Bernama