The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is likely to remain steady next week on better demand, said palm oil trader David Ng.
He told Bernama that next week’s trading was expected to kick off on a firm note with support coming from expectations that the country’s exports will increase, keeping the market’s positive sentiment intact.
He said the palm oil prices would continue to move upwards to mirror the trend of soybean oil futures.
For the week just ended, the market was traded mostly higher on stronger demand due to better crude oil prices and the expectation of higher export due to resumption of India’s import of Malaysia’s CPO.
The local CPO futures market was closed on May 25-26, 2020 for Hari Raya Aidilfitri celebration.
On a Friday-to-Friday basis, the CPO futures contract for June 2020 improved RM133 to RM2,373 per tonne, July 2020 increased RM132 to RM2,321 per tonne, August 2020 gained RM125 to RM2,292 per tonne and September 2020 rose RM114 to RM2,289 per tonne.
Weekly turnover fell to 154,634 lots from last Friday’s 240,413 lots while open interest decreased to 250,651 contracts from 262,459 contracts.
On the physical market, the CPO price for June South was RM111 higher at RM2,302 per tonne.