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MARKET

CPO futures to trade sideways next week

01/05/2021 10:43 AM

By Karina Imran

KUALA LUMPUR, May 1 -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to trade sideways next week on lack of market catalysts. 

A palm oil trader David Ng said most investors would likely be away preparing for the Hari Raya Aidilfitri celebration and awaiting Malaysian Palm Oil Board (MPOB) data due on May 10. 

"The rising of COVID-19 cases in India may also affected the palm oil demand from the country," he told Bernama. 

Meanwhile, Singapore-based Palm Oil Analytics owner and co-founder Dr Sathia Varqa projected the CPO market will be trading based on April's full month supply and demand estimate. 

"Focus will be on April end-month stocks which is expected to show an increase and thereby depress prices lower still," he said. 

For the week just ended, Malaysia’s CPO market was traded mostly lower, tracking weakness in soybean oil prices and lower export interest in the regional market. 

However, on Tuesday, the prices rallied to its biggest single-day gain and close at a 31-day high, with the benchmark July contract hovering above the RM4,000 level.

On a Friday-to-Friday basis, CPO futures contracts were mostly lower, with only May 2021 increasing RM57 to RM4,408 per tonne; June 2021 slightly down by RM6 to RM4,119 per tonne; July 2021 decreased RM59 to RM3,868 per tonne; and August 2021 declined RM73 to RM3,703 per tonne.

Weekly volume shrank to 233,335 lots from 273,775 lots in the previous week, while open interest improved 258,464 contracts from 257,697 contracts a week earlier. 

The physical CPO price for May South remained unchanged at RM4,420 per tonne. 

-- BERNAMA

 

 


 

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