By Fatin Umairah Abdul Hamid
KUALA LUMPUR, June 22 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is likely to adopt a bearish outlook next week due to rising stock levels concern, said palm oil trader David Ng.
“We expect the trading range to be between RM3,800 per tonne and RM3,950 per tonne,” he told Bernama.
On the other hand, Fastmarkets senior analyst Sathia Varqa said traders will be focusing on the release of the Malaysian Palm Oil Association (MPOA) May 1-20 production data for clues on the market direction.
“Higher production outlook could put pressure on prices if exports do not improve,” he said.
On a weekly basis, the spot month of July 2024 slid RM31 to RM3,930, August 2024 went down RM35 to RM3,911, and September 2024 shed by RM60 to RM3,900 a tonne.
The October 2024 note fell by RM69 to RM3,892 a tonne, November 2024 shrank by RM71 to RM3,898 a tonne, while the new contract month of December 2024 stood at RM3,914 a tonne.
Total weekly volume declined to 241,271 lots from 326,532 lots in the previous week, while open interest was down to 215,347 contracts from 229,646 contracts a week ago.
The physical CPO price for June South declined by RM20 to RM3,980 a tonne from RM4,000 in the preceding week.
-- BERNAMA
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