KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is anticipated to trade sideways with a downside bias this week, mainly due to the current negative global market sentiment.
Palm oil trader, David Ng said the negative sentiment could be due to various factors such as economic uncertainties, geopolitical tensions, supply and demand imbalances, or other issues affecting the global market that may lead to a lack of confidence or bearish outlook.
“We anticipate the price to stay within a (narrow) trading range, with RM3,800 as the support level and resistance at RM4,100 per tonne,” he told Bernama.
For the week just ended, the local CPO market traded mixed, mirroring the soybean oil prices on the Chicago Board of Trade (CBOT), fluctuations in crude oil prices and expectations of an increase in exports.
On a weekly basis, December 2023 increased RM72 to RM3,809 per tonne, January 2024 was up RM89 to RM3,891 per tonne, and February 2024 edged up RM92 to RM3,931 per tonne.
March 2024 rose RM93 to RM3,948 per tonne, April 2024 increased RM93 to RM3,945 per tonne, and May 2024 climbed RM92 to RM3,927 per tonne.
Total weekly volume improved to 275,274 lots from 248,880 lots in the preceding week while open interest fell to 210,160 contracts from 215,538 contracts previously.
The physical CPO price for November South rose RM120 to RM3,820 per tonne from RM3,700 per tonne in the previous week. – BERNAMA
