KUALA LUMPUR: The crude palm oil (CPO) futures on Bursa Malaysia Derivatives are expected to trend with an upward bias this week on sustained positive sentiment in the market.
Palm oil trader David Ng said a positive note from the week just ended is expected to continue amid strong soybean oil performance coupled with rising crude oil prices.
“We expect the CPO prices to be supported at RM3,700 with resistance seen at RM4,000 next (this) week,” he told Bernama.
Meanwhile, independent inspection company Amspec Agri Malaysia said exports for Malaysian palm oil products for Sept 1-15 fell 9.3 per cent to 574,936 tonnes from 633,585 tonnes shipped during the same period last month.
Malaysian Palm Oil Board data showed that Malaysia’s total palm oil stocks surged 22.54 per cent to 2.12 million tonnes in August 2023 from 1.73 million tonnes in the month before.
Palm oil exports fell 9.78 per cent, or 132,522 tonnes, to 1.22 million tonnes in August from 1.35 million tonnes previously.
For the week just ended, CPO futures were traded mostly higher, lifted by the recovery in soybean oil futures on the Chicago Board of Trade, coupled with rising crude oil prices.
On a weekly basis, the September 2023 contract fell RM40 to RM3,690 per tonne, October 2023 slid RM23 to RM3,729 per tonne, and November 2023 decreased RM45 to RM3,785 per tonne.
December 2023 erased RM49 to RM3,830 per tonne, January 2024 declined RM47 to RM3,871 per tonne, and February 2024 dropped RM37 to RM3,910 per tonne.
Total weekly volume jumped to 325,799 lots from 270,010 lots in the preceding week, and open interest narrowed to 203,441 contracts from 272,970 contracts previously.
The physical CPO price for September South slid RM50 to RM3,750 per tonne from RM3,800 per tonne in the previous week. – BERNAMA
