By Lizawati Bahanan
KUALA LUMPUR, Nov 21 -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to consolidate further next week with bouts of profit-taking, as the benchmark contract month moves between RM3,200 and RM3,300 per tonne.
Interband Group of Companies senior palm oil trader Jim Teh said this is because market prices have shown a significant uptrend since 2007.
"There is a lot of palm oil demand for Christmas, mainly from India and China. The price is tremendously high," he told Bernama.
For the week just ended, the CPO price was lower, influenced by higher price of the commodity, which deterred buying interest; a weaker soya bean oil prices on the US Chicago Board of Trade (CBOT); and a slow down in palm oil demand.
On a Friday-to-Friday basis, the CPO futures contract for December 2020 down RM27 to RM3,483 per tonne, January 2021 decreased RM24 to RM3,356 per tonne, and February 2021 eased RM11 to RM3,288 per tonne, while March 2021 added RM7 to RM3,220.
Weekly volume increased to 320,689 lots from 293,981 lots in the previous week, while open interest dropped to 259,018 contracts from 259,256 contracts a week earlier.
On the physical market, November South stood at RM3,510 per tonne.
Malaysian National News Agency
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