KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is likely to trade lower this week, amid expectations of higher production and stock levels.
Palm oil trader David Ng said market sentiment is also expected to be dampened by recent sluggish export pace.
“Higher stockpiles create downward pressure on prices because there is more supply than the market needs at this moment.
“This week, we expect prices to trade between RM4,180 per tonne and RM4,300 per tonne with a downward bias,” he told Bernama.
Meanwhile, Palm Oil Analytics co-founder and senior analyst Sathia Varqa said market participants will be closely monitoring the Malaysian Palm Oil Board’s July supply and demand data, which is scheduled to be released today.
