by BERNAMA / pic by MUHD AMIN NAHARUL
KUALA LUMPUR • The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to witness profit-taking activities next week after its recent strong performance.
Palm oil trader David Ng said a weaker exports outlook may also add pressure on prices.
‘’We locate the support at RM6,000 per tonne and resistance at RM6,700,’’ he told Bernama.
The CPO active month continued to hover at a one-month high on Friday and closed the week with its best weekly gains of the year, amid worries over the tight supply outlook for the global vegetable oils market.
Meanwhile, Palm Oil Analytics owner and co-founder Dr Sathia Varqa said next week’s four-day trading movement would also be dependent on the April production assessment and developments on the Russia-Ukraine conflict.
CPO production increased 24.07 per cent to 1.41 million tonnes in March 2022 compared with 1.13 million tonnes in February 2022, according to the Malaysian Palm Oil Board (MPOB).
The country’s CPO stocks fell to 764,079 tonnes, down 2.60 per cent or 20,409 tonnes from 784,488 tonnes in the preceding month.
Meanwhile, exports improved 14.14 per cent month-on-month to 1.26 million tonnes in March 2022 from 1.10 million tonnes previously.
For the week just ended, CPO futures were traded mostly higher, tracking the firmer Chicago Board of Trade’s soybean oil prices, improved energy market and stronger export outlook.
On a Friday-to-Friday basis, April 2022 gained RM139 to RM6,820 per tonne, May 2022 climbed RM385 to RM6,692 per tonne, June 2022 soared RM536 to RM6,457 per tonne, July 2022 surged RM571 to RM6,310 per tonne.
August 2022 jumped RM531 to RM6,181 per tonne and September 2022 was RM472 stronger at RM6,067 per tonne.
Weekly volume expanded to 271,054 lots from 226,926 lots last week, while open interest rose to 231,959 contracts from 192,984 contracts previously.
The physical CPO price for April South added RM100 to RM6,800 a tonne.