By Fatin Umairah Abdul Hamid
KUALA LUMPUR, May 4 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to trade on a slight upward bias ahead of key crop data next week, said a dealer.
Palm oil trader David Ng said market participants will be monitoring the monthly Malaysian Palm Oil Board (MPOB) report for April, which is scheduled to be released on Friday next week.
“I think what the market is looking at is a bullish MPOB report with the stock level expected to be lower for another month.
“Hence, we sees prices trading between RM3,800 and RM3,980 next week,” he told Bernama.
On the other hand, Interband Group of Companies senior palm oil trader Jim Teh said CPO futures are likely to trade in a yo-yo mode next week due to the ample supply of palm oil in Malaysia and Indonesia.
The demand for the commodity is expected to come from countries in the Middle East, China, India, Pakistan, and the European Union, he said.
"We expect CPO to trade between the range of RM3,700 to RM3,800 per tonne," he added.
Meanwhile, Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said the export figures for Malaysian palm oil in April showed a month-on-month (m-o-m) decline.
Intertek Testing Services estimates palm oil exports at 1.21 million tonnes, down 8.97 per cent from the March estimate, while AmSpec Agri Malaysia has projected it at 1.14 million tonnes, a decline of 11.46 per cent.
“The Southern Peninsula Palm Oil Millers' Association April data showed that palm oil production rose by 3.76 per cent on a m-o-m basis.
“The market is now awaiting the April palm oil production estimates from UOB Kay Hian and the Malaysian Palm Oil Association ahead of the MPOB April crop report,” he said.
For the week just ended, the market was mostly high, owing to bargain hunting and strong demand from India.
On a weekly basis, the spot month May 2024 contract declined RM41 to RM3,890 a tonne, June 2024 and July 2024 fell RM52 each to RM3,870 and RM3,844 a tonne, respectively.
August 2024 slipped RM48 to RM3,832 a tonne, September 2024 dipped RM44 to RM3,838 a tonne, and October dropped RM46 to RM3,829 a tonne.
The total weekly volume declined to 219,172 lots from 386,204 lots in the previous week, while open interest fell to 230,394 contracts from 245,831 contracts a week ago.
The physical CPO price for May South fell RM70 to RM3,930 a tonne from RM4,000 a tonne in the previous week.
-- BERNAMA
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