CPKO prices staged a comeback rising by RM3.20 to a weekly average of RM275.20/picul or US$1118/ton after snapping to slide lower by RM14.60 last week following 7 consecutive weekly rises. CPKO rose at the back of bullish CPO Futures which was trading on sentiments of lower production and dwindling stocks. CPKO traded between RM 271-285. We predicted trading to be RM270-275/picul last week. Malaysia CPKO exports are seen declining by 14% on lower than usual shipment volume to the E.U. China and India are the other 2 regular buyers. CPKO end-month stocks are expected to contract by 13-14% to the lowest in 7 months, while headline stocks are seen lower by 3 to 3.50%. With lower than expected production data from MPOA (-12%) against a projection of –10%, CPO Futures and all palm product prices including CPKO will be supported at a higher level this week, barring any surprise from MPOB, especially on production and subsequently on headline stocks.
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