ANN/THE STAR – The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is likely to trade in a volatile mode next week, as investors wait for reports by the Malaysian Palm Oil Board (MPOB) and the United States Department of Agriculture (USDA).
Mumbai-based Sunvin Group Commodity Research Head Anilkumar Bagani said markets are expecting the Malaysian palm oil March-end inventories to fall to 1.795 million tonnes on the back of stronger export and weaker production.
“Malaysian palm oil export for the first five days of April were also seen higher at 209,845 tonnes, up by 22.3 per cent from the March 1-5 period,” he told Bernama.
The MPOB report will be published tomorrow, while the USDA report is expected on April 11, according to its website.
Anilkumar also said the market is waiting for the Malaysian Palm Oil Association’s (MPOA) estimates for Malaysia’s March palm oil production. He said the MPOA March estimates are expected to show a positive 2.27-per-cent growth in palm oil production from February.
Anilkumar added that the destinations are extremely quiet and the discount of sunflower oil prices against CPO is the major hurdle for the palm oil market at the moment.
Amid the Good Friday and Easter holidays, the activity is likely to be at the lower end for the rest of the week.
For the week just ended, palm oil was traded mostly lower, tracking the performance of soybean oil futures on the Chicago Board of Trade.
On a weekly basis, spot month April 2023 added RM162 to RM4,220, May 2023 expanded by RM46 to RM3,954 per tonne, and June 2023 gained RM33 to RM3,794 per tonne.
Meanwhile, July 2023 rose by RM22 to RM3,698 per tonne, August 2023 went up RM23 to RM3,652 per tonne and September 2023 increased by RM18 to RM3,621 per tonne.