CPO futures expected in RM1,960-RM2,040 range next week
KUALA LUMPUR, Aug 15 — Crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives are likely to trade softer next week, with prices ranging between RM1,960 and RM2,040 a tonne.
Interband Group of Companies senior palm oil trader, Jim Teh, said the high CPO inventory level reported by the Malaysian Palm Oil Board (MPOB) on Monday would continue to weigh on the commodity's price.
“Total palm oil stocks in July 2015 increased to 2.27 million tonnes, however, demand for the commodity, especially from Indonesia and Malaysia are weak,” he added.
He also noted that the weaker performance of Southeast Asia's stock markets, coupled with the downtrend in crude oil prices had contributed to the fragile market sentiment.
“It is safe to say that we are going through a mild recession, as the other commodities also recorded slower performance, amid weaker currencies,” he told Bernama.
On a weekly basis, August 2015 was down RM45 to RM1,986 a tonne, September 2015 fell RM34 to RM2,004, October 2015 slipped RM15 to RM2,027 and November decreased RM8 to RM2,047 a tonne.
Turnover for the week was higher at 250,172 lots compared with 204,578 lots last week, while the open interest climbed to 262,679 contracts from 232,200 contracts.
On the physical market, August South ended the week at RM2,000 per tonne. — Bernama
