KUALA LUMPUR, Nov 30 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is anticipated to receive a further price boost from the latest supply and demand data to be released next week.
Singapore-based Palm Oil Analytics owner and co-founder Dr Sathia Varqa said next week's focus will be on November end-month stocks and exports data to be released by key cargo surveyors.
"November's stock figures are expected to be lower than October. Sentiment of higher prices from a tight supply scenario is driving the market," he told Bernama.
Societe Generale de Surveillance (SGS), Intertek Testing Services (ITS) and Amspec Malaysia will be releasing their estimates soon, followed by the actual data released by the Malaysian Palm Oil Board on Dec 10.
Sathia said lower output in November will result in analysts revising down their full-year production estimation and this is supportive to the CPO prices outlook going forward.
"CPO futures active month has the strength to test RM3,000 per tonne or even higher from now to the first half 2020," he added.
Recently, ITS released data showing exports fell by 2.12 per cent to 1,187,970 tonnes in the Nov 1-25 period from 1,213,699 tonnes recorded during Oct 1-25.
Meanwhile, Amspec Malaysia data revealed exports for the period dropped 5.19 per cent to 1,179,480 tonnes from 1,243,981 tonnes previously.
Overall, the market was mostly higher, driven by sentiments of tight supply and strong demand.
On a Friday-to-Friday basis, the CPO futures contract for December 2019 fell RM22 to RM2,620 per tonne, January 2020 was up RM2 at RM2,712 per tonne, February 2020 shed RM4 to RM2,744 per tonne, and March 2020 declined RM14 to RM2,746 per tonne.
Weekly turnover narrowed to 286,692 lots from 319,037 lots in the previous week, while open interest eased to 282,536 contracts from 285,461 contracts.
On the physical market, the CPO price for November South gained RM10 to RM2,680 per tonne.