KUALA LUMPUR: Crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives is expected to trade on downside bias due to weak demand, which might weigh on prices, a dealer said.
Palm oil trader David Ng told Bernama that the market expected new week prices to trade in a range between RM3,500 per tonne and RM4,000 per tonne and with a slight downside bias given the weaker demand and high stock situation in the market.
Echoing him, Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said the next week would be short due to holiday on Monday and then there are September supply and demand data released by the Malaysian Palm Oil Board (MPOB) scheduled on Tuesday.
Singapore-based Palm Oil Analytics’ owner and co-founder Sathia Varqa said markets are expecting the MPOB data to show higher September end-month stocks, nearing three years high
According to cargo surveyor, Intertek Testing Services said Malaysia’s palm oil export during October 1-5 period was down by nearly 38 per cent to 155,170 tonnes.
On a Friday-to-Friday basis, CPO futures contracts for spot month October 2022 rose RM303 to RM3,630 a tonne, November 2022 increased RM406 to RM3,790 a tonne, December 2022 improved RM421 to RM3,837 a tonne and January 2023 added RM416 to RM3,876 a tonne.
February 2023 went up RM406 to RM3,909 a tonne and March 2023 was RM391 firmer at RM3,936 a tonne.
Total weekly volume was down to 259,361 lots from 366,702 lots in the previous week while open interest narrowed to 203,332 contracts from 254,209 at the end of last week.
Physical CPO price for September South jumped RM350 to RM3,750 a tonne. - Bernama