KUALA LUMPUR: The local crude palm oil (CPO) futures market is expected to trade range-bound with a downward bias this week ahead of the release of the palm oil industry’s data for May 2023.
Palm oil trader David Ng said the data, which will be released by the Malaysian Palm Oil Board (MPOB) today, would provide traders and investors with better clarity of the country’s palm oil stocks position and help determine their next move in the market.
“We expect the market to trade between RM3,100 and RM3,500 a tonne,” he told Bernama.
Previously, the Malaysian Palm Oil Association said the country’s palm oil production was estimated to jump 26.33 per cent to 1.51 million tonnes in May compared to April.
Last week, CPO futures traded mixed, tracking soybean oil futures on the Chicago Board of Trade and on concerns over rising production going forward.
On a weekly basis, the June 2023 contract rose RM62 to RM3,478 a tonne, July 2023 added RM2 to RM3,408 a tonne and August 2023 dropped RM14 to RM3,367 a tonne. The September 2023 contract fell RM13 to RM3,366 a tonne, October 2023 dropped RM5 to RM3,379 and November 2023 added RM5 to RM3,393. – BERNAMA
