[ Back ]     [ Comments ]     [ Print ]

News Admin
News Provider
 Nur Aisha Abd.Wahab
News Source
 The Star Online
 CPO futures likely to experience technical correction next week

The Star Online (24/04/2021) - KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is likely to undergo a technical correction next week as demand takes a hit based on supply and demand estimates.

Singapore-based Palm Oil Analytics owner and co-founder Dr Sathia Varqa said concerns on rising COVID-19 cases in the country would also impact the CPO market.

Furthermore, the lower production is also causing a supply disruption.

"Market players had expected around 10 to 15 per cent rise in production (for April 1-20); however, it was lower than expected,” he told Bernama.

Yesterday, the Malaysian Palm Oil Association reported that production for April 1-20 increased 6.38 per cent compared to the same period last month.

This week, Malaysia’s CPO market was traded mostly higher, tracking the stronger performance of soybean oil prices and supported by higher export.

On a Friday-to-Friday basis, CPO futures contracts were higher, with May 2021 increasing RM160 to RM4,351 per tonne; June 2021 rising by RM203 to RM4,125 per tonne; July 2021 adding RM211 to RM3,927 per tonne; and August 2021 improving RM187 to RM3,776 per tonne.

Weekly volume shrank to 273,775 lots from 301,540 lots in the previous week, while open interest decreased to 257,697 contracts from 267,814 contracts a week earlier.

The physical CPO price for May South gained RM170 to RM4,420 per tonne from RM4,250 per tonne on Friday last week. - Bernama

Read more at https://www.thestar.com.my/business/business-news/2021/04/24/cpo-futures-likely-to-experience-technical-correction-next-week

Malaysian Palm Oil Board ( MPOB ) Lot 6, SS6, Jalan Perbandaran, 47301 Kelana Jaya, Selangor Darul Ehsan, MALAYSIA.
Tel : 603 - 7802 2800 || Fax : 603 - 7803 3533