KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is forecast to trade with a downside bias because the market continues to be plagued with expectations of upper output next week.
Palm oil dealer David Ng stated the outlook is predicted to be bearish following the upper manufacturing estimates from Southern Peninsula Palm Oil Millers’ Association (SPPOMA) and Malaysian Palm Oil Association (MPOA).
“We anticipate the value to hover between RM5,000 and RM5,800 per tonne,” he advised Bernama.
For the week simply ended, the Malaysian CPO futures have been largely decrease on issues over weaker demand following the lifting of Indonesia’s CPO export ban and expectation of upper manufacturing within the coming weeks.
On a Friday-to-Friday foundation, spot month July 2022 slid RM464 to RM5,679 a tonne, August 2022 narrowed RM396 to RM5,524 a tonne, September 2022 decreased RM312 to RM5,454 a tonne, October 2022 shrank RM248 to RM5,429 a tonne, November 2022 shed RM225 to RM5,440 a tonne and December 2022 was down by RM159 to RM5,460 a tonne.
Total quantity jumped to 397,816 heaps from 258,636 heaps within the earlier week, whereas open curiosity rose to 298,491 contracts from 221,157 contracts.
The bodily CPO worth for June South stays unchanged at RM6,550 a tonne. – Bernama
