CPO futures to trend lower on profit-taking next week

KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to retreat from this week’s gains, driven by profit-taking due to higher prices, a dealer said.

He said the recent major rally in prices may also weigh down the sentiment for the golden crop.

CPO futures accelerated to close at an all-time high yesterday, setting fresh record prices for the third time this week.

The benchmark palm oil contract for December 2021 soared RM117 to RM4,966 a tonne.

Meanwhile, Singapore-based Palm Oil Analytics owner and co-founder Sathia Varqa said markets will closely monitor the Malaysian Palm Oil Board (MPOB) data for September 2021, as well as the Oct 1-10 export data, both due on Monday.

"The expectation is a strong rise in exports from the previous month, a small rise in production, and a decline in stocks,” he told Bernama.

For the week just ended, Malaysian CPO futures finished mostly higher, driven by concerns over weak production and expectation of strong demand in the upcoming weeks.

On a Friday-to-Friday basis, October 2021 increased RM401 to RM5,152 a tonne, November 2021 gained RM473 to RM5,085 a tonne, and December 2021 was RM461 higher at RM4,966 a tonne.

January 2022 advanced RM455 to RM4,869 a tonne, February 2022 rose RM441 to RM4,770 a tonne, and March 2022 gained RM433 to RM4,660 a tonne.

Weekly volume improved to 321,957 lots from 273,151 lots in the previous trading week, while open interest increased to 272,276 contracts from 231,147 contracts previously.

The physical CPO price for October South was RM240 higher at RM5,020 a tonne. - Bernama