KUALA LUMPUR: Crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives are expected to trade with a downward bias this week, given the country’s large stockpile, says palm oil trader David Ng.
He forecast CPO prices would trade between RM3,400 and RM4,000 per tonne.
A Malaysian Palm Oil Board report on Tuesday revealed that CPO stocks for September 2022 rose 24.76% to 1.28 million tonnes from 1.03 million tonnes recorded in the previous month.
Market participants have been taking advantage of palm oil trade growing price advantage to rival soybean oil, which should attract price-conscious buyers and expand biofuel usage.
Keeping a lid on prices was recent data showing that Malaysia’s end-September palm oil inventories widened to the highest level in almost three years, as soaring production offset strong exports.
On top of that, increasing competition from rival Indonesia after Jakarta waived an export levy should limit any significant upside move.