KUALA LUMPUR: Crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives are likely to trade lower next week at between RM2,500 and RM2,600 per tonne, on the lack of buying support for the commodity, a dealer said.
Interband Group of Companies Senior Palm Oil Trader, Jim Teh said slower demand from China and India is expected to weigh on the CPO futures prices in the near term.
“Most buyers have stayed on the sidelines in the market as they perceived current price as being too high,” he told Bernama.
Teh expects the production of Fresh Fruit Bunches to increase due to the current wet weather.
On a Friday-to-Friday basis, April 2014 increased RM1 to RM2,822 a tonne while May 2014 slid RM32 to RM2,764 a tonne, June 2014 lost RM42 to RM2,729 a tonne and July fell RM41 to RM2,697 a tonne.
Weekly turnover fell to 231,429 lots from 239,479 lots last week, while open interest decreased to 224,776 contracts from 238,133 contracts previously.
On the physical market, April South ended RM40 lower at RM2,860 per tonne. – Bernama
Source: Business Times