ANN/THE STAR – The trajectory of the crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to remain upward.
The projection is attributed to the consistent and high demand for palm oil, especially from China.
Head of Commodity Research Anilkumar Bagani at Sunvin Group in Mumbai, observed substantial acquisitions of refined bleached deodorised (RBD) palm olein by China.
Approximately 48,000 tonnes were purchased for October, falling within the price range of USD899-900 per tonne.
“Similarly, around 144,000 tonnes of RBD palm olein were traded on Thursday at USD898-900 per tonne,” Bagani said
“This heightened activity was complemented by the trade of about 15,400 tonnes of palm oil across China’s cash markets,” he told Bernama, forecasting that CPO futures would trade between MYR4,050 and MYR4,130 next week.
For the week just ended, CPO futures traded mostly higher following the uptrend in soybean oil futures on the Chicago Board of Trade and the surge in Chinese vegetable oil futures in the Dalian Commodity Exchange. On a weekly basis, the September 2023 contract inched up MYR6 to MYR3,860 per tonne, October 2023 added MYR73 to MYR3,937 and November 2023 increased MYR91 to MYR3,962.
December 2023 gained by MYR 104 to MYR 3,982 per tonne, January 2024 added MYR108 to MYR4,001 and February 2024 improved MYR106 to MYR4,014.
Total weekly volume eased to 270,241 lots from 285,007 in the preceding week and open interest rose to 200,992 contracts from 193,505 previously.
