KUALA LUMPUR – The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is likely to trend higher in the coming week, boosted by stronger soybean oil prices.
“Local CPO is expected to trade within the range of RM3,600 and resistance at RM3,850 next week,” palm oil trader David Ng told Bernama.
Singapore-based Palm Oil Analytics owner and co-founder Sathia Varqa said exports for the April 1-20 period will be higher, but at a slower pace of increase.
“The new benchmark month, July 2021, stayed above 100 points most of the day, locking in 120 points to end at RM3,710 per tonne.
“Front-month May 2021 closed at RM4,186, or a RM476 premium over the third month, reflecting the poor supply situation for the nearby crop month as exports tick higher.”
He said Southern Peninsula Palm Oil Millers’ Association and Malaysian Palm Oil Association production should keep in check the futures and cash price rally.
The monthly palm oil data by the Malaysian Palm Oil Board released on Monday showed CPO stocks continuing their upward trend last month, growing 12.37% to 742,742 tonnes from the 660,987 tonnes registered in February.
Overall, total palm oil stocks rose 10.72% to 1.45 million tonnes from 1.31 million tonnes previously.
On a Friday-to-Friday basis, CPO futures contracts were higher, with May surging RM136 to RM4,191 per tonne; June increasing by RM155 to RM3,922 per tonne; July rising RM162 to RM3,716 per tonne; and, August going up RM169 to RM3,589 per tonne.
Weekly volume improved to 301,540 lots from 276,736 the previous week, while open interest increased to 267,814 contracts from 260,493 a week earlier.
The physical CPO price for April South fell RM50 to RM4,250 per tonne from RM4,300 on Friday last week. – Bernama, April 17, 2021
