KUALA LUMPUR, Feb 15 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives (BMD) is likely to be steadier next week, rebounding from last week's downtrend, said a dealer.

Singapore-based Palm Oil Analytics owner and co-founder Dr Sathia Varqa said the CPO market is expected to claw back more gains on expectations of improved Feb 1-15 Malaysia’s export volume.

“Traders were looking forward to the February export data which could indicate the market movement.

“Exports are seen falling between 10 and 12 per cent compared to Feb 1-10 of below almost 30 per cent,” he told Bernama.

Throughout the week just ended, the local market was traded mostly lower due to escalating worries over Covid-19 and the anticipation of a stronger production.

However, on Wednesday, BMD continued its string of all-time highs when the daily total trading volume for CPO futures contract touched a new record of 113,668 contracts, surpassing the previous record of 107,062 contracts on Jan 28, 2020.

BMD acting chief executive officer Samuel Ho said this indicates a firm recognition of the continuing confidence in BMD as the global price benchmark market for CPO.

Asked whether there will be such spike in volume next week, Sathia said: “No, we will not see such a high volume in the near term. It is no surprise that sometimes we see a surge when the market is very volatile like this week. The spike in the volume is an outlier.”

On a Friday-to-Friday basis, the CPO futures contract for February 2020 fell RM212 to RM2,660 per tonne, March 2020 eased RM160 to RM2,700 per tonne, April 2020 erased RM153 to RM2,660 per tonne, and May 2020 slid RM147 to RM2,627 per tonne.

Weekly turnover rose to 423,683 lots from 314,124 lots in the previous week, while open interest increased to 321,864 contracts from 315,771 contracts.

On the physical market, the CPO price for February South slipped RM220 to RM2,720 per tonne.



TAGS: Palm oil, CPO, Dr Sathia Varqa, BMD, Covid-19