KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is likely to undergo technical correction next week with pessimistic exports outlook.
Interband Group of Companies senior palm oil trader Jim Teh said prices would likely hover between RM3,200 and RM3,300 per tonne in the coming week. The demand will also be slower, given the upcoming Chinese New Year holiday next month,” he told Bernama.
According to cargo surveyor Societe Generale de Surveillance, Malaysian palm oil products exports for the Jan 1-20 period dropped 43.3 per cent to 572,910 tonnes from 1,010,653 tonnes shipped for Dec 1-20.
Meanwhile, data from another cargo surveyor, Intertek Testing Services also showed that exports of the country’s palm oil products for Jan 1-20 fell 43.1 per cent to 607,900 tonnes from 1,067,670 tonnes for Dec 1-20.
Palm for April delivery on Bursa Malaysia Derivatives dropped as much as 1.7% to RM3,293.
KUALA LUMPUR: Palm oil futures headed for their lowest close in seven weeks on lingering concerns that demand from key buyer China will weaken after the Lunar New Year festival next month.
Prices in Kuala Lumpur dropped as much as 1.7% to RM3,293 per tone, Singapore futures fell 1.3%, while Dalian palm olein declined 0.8%.
Concerns about dwindling demand continue to pressure prices, said Gnanasekar Thiagarajan, head of trading and hedging strategies at Kaleesuwari Intercontinental.
China’s festival demand is over, and that’s the reason why this month’s export figures look weak compared to December, he said.
KUALA LUMPUR (Jan 6): Malaysia’s palm oil inventory likely fell 23% month-on-month (m-o-m) and 40% year-on-year (y-o-y) to 1.21 million tonnes at end-December 2020 the lowest stock level since June 2007, due to higher exports and declining output, a survey by the CGS-CIMB Futures team showed.
The survey also revealed that Malaysia’s crude palm oil (CPO) output probably fell 11.1% m-o-m (-1% y-o-y) to 1.33 million tonnes in December 2020.
“We believe the lower production could be due to worker shortage issues caused by the current freeze on foreign worker permits and seasonality factors as well as some disruptions in harvesting and evacuation due to heavier-than-usual rainfall caused by La Nina in some parts of the country,” it said.
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Crude palm oil continues to show strong demand as CPO rises to RM3,500 per tonne.
NEW DELHI: Palm oil burst through RM3,500 a tonne to the strongest level in more than eight years on optimism that rising exports from Malaysia will deplete the country’s stockpiles and that stronger prices for rival soybean oil will increase the appeal of palm oil.
“It’s a rebound after the lackluster trade yesterday, ” said Sathia Varqa, owner of Palm Oil Analytics in Singapore.
“Prices regained their footing from a better export outlook for December and lower output. Higher prices for Dalian and Chicago soybean oil are also supportive.”