CPO Futures Likely to See Profit-Taking

The crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives are likely to see profit-taking next week.

Interband Group of Companies senior trader, Jim Teh, said buyers were expected to involve more in short-term trading next week.

“The prices are expected to hover between RM3,200 and RM3,300 next week,” he said.

He also advised consumers to be cautious on signs of inflation as the higher CPO price could result in an increase in the food prices.

On a Friday-to-Friday basis, April 2012 increased RM36 to RM3,393 per tonne, May 2012 added RM51 to RM3,403, June 2012 gained RM63 to RM3,397 and July 2012 advanced RM58 ro RM3,391.

Turnover for the week increased to 121,851 lots from 96,956 lots last week while open interest rose to 130,371 contracts from 124,767 contracts previously.

On the physical market, March South surged RM50 to RM3,380 from RM3,330 per tonne. — Bernama

Source: Business Times

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