KUALA LUMPUR, April 23 ― Crude palm oil (CPO) futures market is expected to see cautious trading next week with prices ranging between RM2,600 and RM2,700 a tonne, a dealer said.
Interband Group of Companies Senior Palm Oil Trader, Jim Teh, said this is because the demand is expected to slow down as West Asia, India and Pakistan have already stocked up palm oil ahead of Ramadan.
“The palm oil production in Indonesia and Malaysia are expected to drop this year following hot and dry weather led by the El Nino weather pattern,” he told Bernama.
For the week just-ended, palm oil fell for the first time in five days on poor exports and weak soyaoil market.
Malaysia's palm oil export products for April 1-20 perked 0.9 per cent to 724,169 tonnes from 717,670 tonnes shipped during the same period last month, according to cargo surveyor, Societe Generale De Surveillance.
May 2016 and June 2016 fell RM50 each to RM2,677 and RM2,693 a tonne, respectively, while July 2016 eased RM49 to RM2,690 a tonne and August 2016 decreased RM46 to RM2,669 a tonne.
Turnover fell to 239,608 lots from last week's 246,253 lots while open interest decreased to 294,837 contracts from 323,814 contracts previously.
On the physical market, April South depreciated RM60 to RM2,690 a tonne. ― Bernama
