CPO Futures Expected to be Range Bound

Crude palm oil (CPO) futures are expected to be in rangebound trade on Bursa Malaysia Derivatives next week as some investors are still worried about the slowdown in exports, dealers said.

Cargo surveyor Societe Generale de Surveillance reported on Thursday that Malaysian palm oil exports for August 1-20 dropped seven per cent to 814,403 tonnes from 875,330 tonnes in the same period last month.

Intertek Testing Services said exports for the first 20 days fell 10.7 per cent to 815,208 tonnes from 913,153 tonnes.

Dealers said the CPO price, expected to hover between RM2,300 and RM2,400 per tonne, might also be influenced by soyoil prices on the Chicago Board of Trade and China’s Dalian Commodities Exchange.
For the week just ended, the September 2009 contract fell RM81 to RM2,380 per tonne, October 2009 declined RM63 to RM2,378 per tonne and November 2009 eased RM92 to RM2,345 per tonne compared to the previous week’s closing.

Total weekly turnover increased to 117,199 lots from 101,444 lots while open interest rose to 85,985 contracts from 82,472 contracts.

On the physical market, August South declined to RM2,400 per tonne from RM2,500 per tonne a week earlier. – Bernama

Source : Business Times

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