Crude palm oil futures prices on Bursa Malaysia Derivatives are likely
to remain above RM3,000 per tonne next week amid strong overseas demand,
dealers said.
A dealer said demand fundamentals for palm oil remained supportive
and the industry was expecting more shipment to China, India and the
Middle East.
“Due to strong demand, stemming from these markets, CPO prices will
remain firm, hovering between RM3,400 and RM3,480 per tonne, despite
rising production,” he added.
Market players expect palm oil production to increase in the second
half with output tipped to reach 18 million tonnes this year following
two consecutive years of decline.
CIMB’s Group Treasury Research said demand would continue to spiral in
the weeks ahead with the Muslim fasting month less than three months
away.
However, another dealer said the CPO market may see some correction
with investors taking profits following the recent surge in prices.
Another dealer said market players were also awaiting the release of May’s export data, due on Tuesday, for fresh market leads.
On a weekly basis, June increased RM67 to RM3,544 per tonne, July
jumped RM68 to RM3,490, August gained RM48 to RM3,438 and September rose
RM29 to RM3,408.
Turnover increased to 110,484 lots, from 94,638 lots, last week
while open position rose to 106,927 contracts, from 105,668 contracts,
previously.
On the physical market, the June South ended the week at RM3,520 per tonne. — Bernama
