KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is likely to trade higher next week, given the expected good weather and better production, said a dealer.
Interband Group of Companies senior palm oil trader Jim Teh opined that CPO would trade between RM3,700 a tonne and RM3,800 a tonne next week due to heavy stock.
"It may also continue to trade higher, tracking on the prices of soybean oil and other markets," he told Bernama.
He also pointed out that the recent diesel subsidy rationalisation would not affect the market as the physical demand would come from China, India, Pakistan and Middle East countries.
According to the Malaysian Palm Oil Board (MPOB), Malaysia's total palm oil stocks increased by 0.5 per cent to 1.75 million tonnes in May 2024 from 1.74 million tonnes in April 2024, while palm oil exports were up by 11.66 per cent to 1.38 million tonnes in May versus 1.23 million tonnes in April.
For the week ended, the market was traded mixed due to weaker soybean oil and Dalian palm olein prices amid the anticipation of strong demand from key importing countries.
On a weekly basis, the spot month June 2024 contract increased RM30 to RM3,983 a tonne, while July 2024 slid RM14 to RM3,961, August 2024 went down RM29 to RM3,946, and September 2024 shed by RM46 to RM3,928 a tonne.
The October 2024 note fell RM61 to RM3,911 a tonne, and November 2024 shrank by RM66 to RM3,911.
Total weekly volume rose to 326,532 lots from 273,012 lots in the previous week, while open interest was up to 229,646 contracts from 214,980 contracts a week ago.
The physical CPO price for June South remained unchanged at RM4,000 a tonne.
-- BERNAMA