KUALA LUMPUR: The crude palm oil (CPO) futures on Bursa Malaysia Derivatives is expected to trade upward next week, driven by a bullish outlook on the commodity, a dealer said
Interband Group of Companies senior palm oil trader Jim Teh said price was expected to range between RM2,100 and RM2,200 per tonne, as demand was expected to rise on possible positive announcement on the East Coast Rail Link (ECRL) re-negotiation with China.
Prime Minister Tun Dr Mahathir Mohamad is scheduled to give a press conference in Putrajaya on Monday regarding details of the concluded ECRL deal.
According to Tun Daim Zainuddin, the prime minister’s special envoy for the ECRL talks, Malaysia has managed to reduce the cost for the ECRL project by RM21.5 billion.
Teh told Bernama that traders were awaiting news on whether the project would be on a barter trade basis, that is, Malaysia would pay the cost by trading palm oil with China.
He said the commodity would also likely be supported by the increase in demand due to the upcoming Ramadan month, as well as the lower palm oil stock in March, according to data released by the Malaysian Palm Oil Board this week.
On a Friday-to-Friday basis, spot month April 2019 shed RM91 to RM2,038 per tonne, May 2019 declined RM93 to RM2,109 per tonne, June 2019 was RM62 lower at RM2,162 per tonne and July 2019 fell RM53 to RM2,184 per tonne.
Weekly turnover increased to 234,127 lots from 220,189, while open interest narrowed slightly to 271,307 contracts from 267,620 contracts.
On the physical market, April South expanded by RM60 to RM2,100 a tonne. – Bernama
