The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was up 1.25% at 2,028 ringgit ($492.59) per tonne at the close of trade in its third straight session of gains. Earlier in the session, it rose as much as 1.3% to 2,030 ringgit, its strongest levels since June 21.
KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to extend its bearish trend next week on subdued demand, trading at between RM1,900 and RM1,945 a tonne, said a dealer.
He said CPO production was expected to rise in the coming months, which would put pressure on stock levels in the country and keep the price on a downtrend.
"The local CPO also will be closely tracking the soyoil prices on the Chicago Board of Trade as both commodities compete for the same export destinations, their prices often moving in tandem,” he added.
During the week just ended, CPO traded lower, tracking movements of closely competing edible oils as well as of the ringgit versus the US dollar.
On a Friday-to-Friday basis, July 2019 fell RM133 to RM1,865 a tonne, August 2019 went down RM91 to RM1,920 a tonne, September 2019 decreased RM71 to RM1,951 a tonne and October 2019 retreated RM57 to RM1,983 a tonne.
Weekly turnover dropped to 202,943 lots from 227,668 lots last week, while open interest advanced to 256,864 contracts from 248,844 contracts previously.
On the physical market, July South stood at RM1,900 a tonne. - Bernama
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