The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is likely to trade higher next week on low production. Speaking to Bernama, Singapore-based Palm Oil Analytics owner and co-founder Dr Sathia Varqa said the fundamentals of lower stockpiles and high exports were supportive of higher palm oil prices. He said cargo surveyor Societe Generale de Surveillance reported that Malaysia’s August 1-10 export was up by 4%, defying lower estimates from Intertek Testing Services and AmSpec Agri Malaysia which expected a decline of 13% and 10%, respectively. "Next week, trading will be based on mid-month August export which is expected to build on the gains from August 1-10,” said Varga, adding that prices might also fall due to profit taking. Research firms believe the price of CPO would stay higher for some time given its tight supply situation which would likely remain at least until the end of the Q3,2021.

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