KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to see a positive trend in the upcoming week driven by the rising prices of crude oil and soybean oil. According to palm oil trader David Ng, the market is likely to find support at RM3,700, indicating a potential buying interest and stability. However, there may be a resistance level around RM4,100 that could pose a challenge for further upward movement, as stated by Ng.
During the previous week, CPO futures had a largely positive performance due to lower stock levels and the overall strength observed in the soybean oil market of the Chicago Board of Trade (CBOT). In terms of weekly figures, July 2023 saw an increase of RM61 to RM3,818 per tonne, August 2023 rose by RM30 to RM3,844 per tonne, and September 2023 improved by RM47 to RM3,881 per tonne. October 2023 experienced a rise of RM50 to RM3,899 per tonne, November 2023 grew by RM48 to RM3,908 per tonne, while December 2023 declined by RM54 to RM3,820 per tonne.
Over the week, the total trading volume decreased to 270,001 lots from 338,013 lots, whereas the open interest increased to 190,758 contracts from 181,912 contracts last Friday. The physical CPO price for July South also saw an increase of RM50 to RM3,880 per tonne. – Bernama
Credit: The Star : Business Feed
