CPO futures to trade lower next week on weaker exports

The crude palm oil (CPO) futures on Bursa Malaysia Derivatives is expected to trade lower on the new benchmark month, April 2022, next week due to export weakness, dealers said.

Singapore-based Palm Oil Analytics owner and co-founder Sathia Varqa said the expected profit-taking and market talk of lower mid-January exports are likely to weigh down on CPO futures.

“Palm trading market is also still clinging on to the idea of lower production due to floods in Peninsular Malaysia but production is expected to rebound as floods subside,” he told Bernama.

Echoing similar sentiments, Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said the market is likely to trade lower next week as the first half of January 2022 palm oil export performance is bad, while the Malaysian weather is turning normal.

“The uncompetitive palm oil price over soft oils is the major deal breaker for palm oil at the key destination markets and it will have to correct lower to regain buying interest,” he said.

The Star

Tags: Crude palm oil, Production, Malaysia, futures, Market, export, price