KUALA LUMPUR: Crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives is expected to trade on downside bias next week as caution gripped traders over possible rising stock.
Palm oil trader David Ng said the rising production due to higher seasonal would pressure the CPO market performance next week.
“Even the weaker ringgit unlikely to push the CPO higher due to the increasing stockpiles,” he told Bernama.
Meanwhile, Singapore-based Palm Oil Analytics’ owner and co-founder Sathia Varqa said the trading would be focused on September production data from the Malaysian Palm Oil Association and estimates ahead of the Malaysian Palm Oil Board data due on October 11.
On a Friday-to-Friday basis, CPO futures contracts for spot month October 2022 fell RM346 to RM3,327 a tonne, November 2022 declined RM326 to RM3,384 a tonne, December 2022 dropped RM320 to RM3,416 a tonne and January 2023 decreased RM300 to RM3,460 a tonne.
February 2023 slipped RM304 to RM3,503 a tonne and March 2023 was RM301 weaker at RM3,544 a tonne.
Total weekly volume was down to 366,702 lots from 1,008,219 lots in the previous week while open interest narrowed to 254,209 contracts from 203,306 at the end of last week.
Physical CPO price for September South dipped RM400 to RM3,400 a tonne.