KUALA LUMPUR (June 25): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to experience a technical correction next week with high supply in the market weighing on prices. “Export data for June 1-20 is not that encouraging and we are heading into [a possible] recession where people would only buy what they need. Teh said despite the recent selldown of CPO, planters were still making profits given the cost of production which ranged between RM1,600 and RM1,800 per tonne. Total volume rose to 438,658 lots from 397,816 lots in the previous week, while open interest narrowed to 215,808 contracts from 298,491 contracts previously. The physical CPO price for July South finished the week at RM4,900 a tonne, compared with June South’s RM6,550 a tonne on the previous Friday.
