CPO Futures May Retreat on Profit-Taking

The crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives, which closed on a high note this week, may see a retreat next week, dealers said.

A dealer said the Malaysian market is expected to see some profit-taking after a recent high.

“We expect the CPO futures support prices to be at the RM3,300 level while the resistance prices to be at the RM3,450 level,” she said, adding the market is waiting for the export data to be released on Monday for fresh leads.

“If the export data is lower than the natural level, it will give pressure to prices,” she said.
Meanwhile on the physical market, Interband Group of Companies senior trader Jim Teh said the market is expected to see profit-taking due to lack of interest from major buyers.

“Prices are expected to move between the RM3,200 to RM3,300 level while volumes are expected to be small.

“The current price is a bit high and has caused buyers to stay on the sidelines,” he told Bernama today.

On a Friday-to-Friday basis, April 2012 increased RM77 to RM3,470 per tonne, May 2012 added RM33 to RM3,436 per tonne, June 2012 gained RM29 to RM3,426 per tonne and July 2012 advanced RM24 to RM3,415 per tonne.

Turnover for the week increased to 131,755 lots from 121,851 lots last week, while open interest decreased to 122,586 contracts from 130,371 contracts previously.

On the physical market, March South increased RM30 to RM3,410 per tonne from RM3,380 per tonne last Friday. — Bernama

Source: Business Times

Leave a Reply