CPO futures likely to trade in cautious mode next week

TheStar Sat, Jun 13, 2020 10:31am - 5 years View Original


KUALA LUMPUR: The crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives are likely to trade in a cautious mode next week, with traders concerned over a second wave of the COVID-19 pandemic.

Singapore-based Palm Oil Analytics’ owner and co-founder Dr Sathia Varqa said the the resurgence of the pandemic could curb the speed of restarting economies.

"CPO trading will track global financial markets which are reacting to worries over a second wave of pandemic as the number of cases in the US has surpassed two million,” he told Bernama.

US shares tumbled on Thursday, their biggest daily decline since March 2020 (-6.9 per cent), as investors turned to risk-off mode amid the pace of future economic recovery prospects and mounting fears of a second wave of the pandemic.

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