KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to see quiet trading next week or retreat on slight profit-taking, with the price to move between RM3,200 and RM3,350 per tonne.
Interband Group of Companies senior palm oil trader Jim Teh said investors would likely be on leave for Chinese New Year as early as Jan 9 and resume trading on Feb 15. Most of them would not take oil next week due to the celebration, especially China as they have gotten their stock ahead of the festival, last month,” he told Bernama.
Meanwhile, Singapore-based Palm Oil Analytics owner and co-founder Dr Sathia Varqa said trading is expected to be volatile next week due to a short trading week with more focus on month-end stock for January.
Interband Group of Companies senior palm oil trader Jim Teh said the price would likely trade between RM3,350 and RM3,450 per tonne.
KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to see quiet trading or retreat next week on mild profit-taking, as traders will go on leave for the Christmas and New Year celebration, a dealer said.
Interband Group of Companies senior palm oil trader Jim Teh said the price would likely trade between RM3,350 and RM3,450 per tonne. Similar to the yearly scenario, we will come across some window-dressing activity by public-listed companies and this would help push up the edible oil’s prices as we move towards end of the year, ” he told Bernama.
Malaysian refiners will be in a better position as CPO export prices will now be higher than refined products, so the reinstatement of the tax is positive for refiners and integrated industry players.
KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed higher today on the back of stronger soybean oil prices during the Asian hours.
Palm oil trader David Ng located support at RM3,380 and resistance at RM3,500 per tonne.
Meanwhile, Singapore-based Palm Oil Analytics’ owner and co-founder Dr Sathia Varqa said the prices moved lower after the announcement of export tax for CPO but strong support from fundamentals of lower output, higher export, as well as tumbling stocks, helped the CPO futures to rebound.
CRUDE palm oil (CPO) prices have been rising this year to attain an eight-year high despite the Covid-19 pandemic, suggesting brighter prospects for the plantation sector.
The most active CPO futures contract closed at RM3,437 last Friday. It had climbed to RM3,489 on Nov 19 after falling to a year-low of RM1,946 in May. Since then, prices have risen higher.
Spot prices breached the RM3,500 benchmark on Nov 19, rebounding from the low of RM2,030.50 on May 14, 2020.
MIDF Research Analyst Khoo Zhen Ye says the current rally in CPO prices has been premised on lower supply, as palm oil inventory levels have been declining despite now being the higher production period. A decline in soybean production in South America and in sunflower oil in the Black Sea also contributed to higher CPO prices.