Internationally Palm Oil likely To Trade On Downward Bias This Week


KUALA LUMPUR: According to palm oil trader David Ng, the crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is likely to trade on a downward bias this week after recording strong trading last week.

He suggested that the recent rise in prices might encourage activities that take profits.

He stated that “The CPO is likely to trade between RM3,900 and RM4,200 per tonne this week.”

Dr. Sathia Varqa, co-founder and owner of Palm Oil Analytics in Singapore, stated that the release of production and export figures for the first 20 days of February would drive CPO trading this week.

He stated that the active month of May 2023 had crossed RM4,000 per tonne for the first time since January 9.

This occurred as a result of a shift toward bullish sentiments sparked by the Indonesian government’s policy of suspending unutilized export permits in order to guarantee a sufficient domestic supply of cooking oils.

He stated, “The Indonesian government is trying to increase the domestic supply of cooking oil in preparation for a surge in demand during the fasting month of Ramadan.”

On a weekly basis, new spot month March 2023 was RM195 stronger at RM4,095 per tonne, April 2023 was RM197 stronger at RM4,128 per tonne,

May 2023 was RM199 stronger at RM4,131 per tonne, June 2023 was RM190 stronger at RM4,109 per tonne, and July 2023 was RM195 stronger at RM4,083 per tonne. This was driven by signs of rebounding demand and