KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is likely to trade higher next week, in sync with increased export data, a projected stronger Dalian Commodity Exchange performance, recovery in equity markets, and sustained gains in Brent crude oil price.
Palm oil trader David Ng said demand would come from major buyers like India and China, amidst imposition of Malaysia’s zero tax charges.
"India and China have stepped up their purchases of palm oil, which will likely lower the overall stock level in Malaysia,” he told Bernama.
Singapore-based Palm Oil Analytics’ owner and co-founder Dr Sathia Varqa said CPO futures rose rapidly and sharply toward closing on Friday, as market talks had indicated that Malaysia's export for June 1-20 period was expected to rise 55-57 per cent compared to the same period in May.
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