The weather condition is expected to have a major impact on crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives next week, dealers said.
Weather to Influence Palm Futures Prices
They said prices are likely to continue their uptrend, but a major resistance is expected at RM2,725 level. “It’s very hard to say now, looking at the weather condition. Rubber price went up quite sharply recently and it is expected to see a temporary correction soon,” a dealer said. Another dealer said, the upcoming festivities locally and around the region would boost demand for edible oils, particularly CPO, which would result in a positive sentiment in the market. However, he cautioned that continued rains would slow palm oil harvesting and disturb production. Malaysian Palm Oil Board would be issuing July’s palm oil production, exports, imports and stocks data next Tuesday and it is also expected to influence the market. Malaysia’s crude palm oil futures surged to a fresh four month high on Thursday as investors covered short positions, while prices almost touched a five-month high and stayed attractive throughout the week. For the week just-ended, August closed RM163 higher at RM2,752 per tonne, September added RM159 to RM2,697 per tonne, October rose RM144 to RM2,667 per tonne and November was RM139 higher at RM2,651 per tonne. Total turnover increased to 79,034 lots from 78,134 lots last week while open interests was lower at 66,617 contracts from 68,905 contracts previously. On the physical market, the August South contract ended the week with delivery prices between RM2,680 and RM2,755 per tonne compared to RM2,600 per tonne last Friday.–Bernama Source : Business Times
