KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is likely to trade lower or remain weaker next week in anticipation of weaker exports in the coming weeks.

Palm oil trader David Ng said the exports report will likely affect sentiment next week.

“Trading next week will be based on Aug 1-20 exports outlook and production estimates from Malaysian Palm Oil Association (MPOA) and Southern Peninsula Palm Oil Millers’ Association (SPPOMA).

“We expect prices to trade within RM4,100 to RM4,350 a tonne,” he told Bernama.

For the week just ended, Malaysian CPO futures finished mostly lower, driven by production uncertainty, lower demand and weaker exports for palm oil in the coming weeks.

On a Friday-to-Friday basis, September 2021 declined RM96 to RM4,514 per tonne, October 2021 fell RM140 to RM4,371 per tonne, November 2021 lost RM133 to RM4,265 per tonne, December 2021 decreased by RM116 to RM4,193 per tonne, January 2022 dipped RM94 to RM4,139 per tonne and February 2022 eased RM59 to RM4,091 per tonne.

Weekly volume climbed to 339,179 lots from 226,304 lots in the previous trading week, while open interest added to 263,451 contracts versus 244,987 contracts previously.

The physical CPO price for September South was down by RM70 to RM4,600 a tonne on Friday. – Bernama