Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives is
likely to continue its upward momentum next week amid continuous demand
from China, India, Pakistan and Indonesia, a dealer said.
These countries have begun purchasing the edible oil to meet the requirements of consumers during the Ramadhan month.
Another key factor that is expected to drive prices is the weather condition.
“This will be the biggest concern for the market for some time.
“The rainy season could affect harvesting, hence, forcing prices to
spiral,” said another dealer of the impending monsoon season.
He forecast crude palm oil prices to fetch between RM2,600 and RM2,700 per tonne next week.
“But given the good demand in the market, the price may breach RM2,800 per tonne,” said the dealer.
Meanwhile, cargo surveyors, Intertek Testing Service and Societe
Generale de Surveillance are expected to unveil Malaysian’s palm oil
export data on Saturday and Monday, respectively.
For the week just-ended, August closed RM31 higher at RM2,589 per
tonne, September added RM28 to RM2,538 per tonne, October rose RM19 to
RM2,517 per tonne and November was RM17 higher at RM2,512 per tonne.
Total turnover for the week narrowed to 78,134 lots from 86,443
lots last week while open position rose to 68,905 contracts from 68,218
On the physical market, spot month August South was quoted at RM2,600 per tonne. — Bernama