KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to trade sideways this week as traders remain on a cautious mode, a dealer says.
Palm oil trader David Ng stated that market players will closely monitor the export pace of CPO to gain a better understanding of market sentiment.
“Therefore, we will see prices to trade between RM4,150 and RM4,300 this week,” he told Bernama.
On the other hand, Interband Group of Companies senior trader Jim Teh said profit-taking activities might take place next week due to the recent uptrend in CPO prices.
“As for the stockpile, there is plenty of stock in both Malaysia and Indonesia, so the market is also expected to trade volatility with demand for the physical palm oil mainly coming from the Middle East, China as well as India,” he added.
For the week that just ended, CPO futures traded mostly lower tracking the volatile performance of soybean oil prices on the Chicago Board of Trade and Dalian Commodity Exchange, coupled with a lack of fresh catalyst.
On a weekly basis, the spot month April 2024 declined by RM35 to RM4,307 a tonne, May 2024 declined by RM4,252 a tonne and June 2024 lost RM32 to RM4,188 a tonne.
