CPO Futures’ Bearish Trend to Persist

Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives are

expected to continue the bearish momentum into next week amid a gloomy

global economic scenario.

A dealer said the performance of the market will depend much on the

economic conditions as a whole, with many buyers expected to apply a

sell-off and buying-at-low, attitude.

Meanwhile, Interband Group senior trader Jim Teh, expects the price

for the physical CPO to be in the range of RM2,700 to RM2,800 next week

with buyers expected to be on the sidelines.

“We foresee some profit taking activities next week and buyers are

expected to closely monitor the situation in Europe and the United

States before joining the market,” he added.

On a weekly basis, August 2011 added RM18 to RM3,128 per tonne, while

September 2011 lost RM18 to RM3,079, October 2011 fell RM45 to RM3,051

and November 2011 dropped RM49 to RM3,044.

Turnover jumped to 116,785 lots from the 99,327 lots last Friday

while the open position narrowed to 127,541 contracts from 131,253

contracts previously.

On the physical market, August South eased RM10 to RM3,150 per tonne on Friday. –Bernama

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