CPO Futures Likely to Trade Higher Next Week

KUALA LUMPUR, Nov 21
(Bernama) — Crude palm oil (CPO) futures prices on Bursa Malaysia
Derivatives are expected to be rangebound next week, dealers said.




“Players are expected to remain cautious over the volatile commodities market,” a dealer said.




The benchmark month November 2009 is expected to move between RM2,350 and RM2,450 a tonne next week, he said.



On a positive note, a dealer said that the strong export data
released last Friday by cargo surveyors, Societe General de
Surveillance (SGS) and Intertek Testing Services (ITS), would give some
support to the CPO market next week.



Exports of Malaysian palm oil products for Nov 1-20 rose 15.6 per
cent to 954,652 tonnes from 825,626 tonnes shipped between Oct 1 and
20, according to figures released by cargo surveyor Societe Generale de
Surveillance.



Intertek Testing Services reported that export of Malaysian palm
oil products from Nov 1-20 rose 14.53 per cent to 930,133 tonnes from
812,095 tonnes.



The market was traded mostly higher throughout the week, except on
Thursday, on profit-taking today as market players adopted a
wait-and-see attitude ahead of the release of key export data on Friday.



On a Friday-to-Friday basis, CPO futures for December 2009
contract rose RM150 to RM2,370 per tonne and January 2010 went up RM137
to RM2,392 per tonne.




The February 2010 contract climbed RM150 to RM2,419 and March 2010 also rose RM127 to RM2,415 per tonne.



Turnover increased to 85,312 lots from 55,342 lots last Friday
while open position rose to 96,736 contracts on Friday from the 96,400
contracts recorded at the end of last week.




As for the physical contract month, November South stood at RM2,350 per tonne.

Source : BERNAMA

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