CPKO local prices locked in another week of rising to RM 4 to RM 193.40/picul or US$ 772/ton week-on-week average, tracking the modest gains on CPO Futures. Local CPKO traded between RM 189-195/picul staying within the 50 days rolling average trend. Prices failed to test the high of RM 210/picul as we predicted after the Futures market fizzled in the rest of the week. CPKO fundamentals are still strong with PKO closing stocks and PKO production remaining flat compared to the same time last year supporting prices at above RM 190/picul for now. At mid-day CPKO local offers were RM 190-192/picul, coming under pressure from intense sell-off in the CPO Futures market. CPKO exports in the first 20 days of Oct is almost unchanged at 11,700 tons. With CPO Futures challenged at 2800 support level, cash palm product prices will be lower today, including CPKO.
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