CPO Futures Prices Seen Choppy

Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives are expected to be choppy next week, hovering around the RM3,000-level per tonne.

A dealer said CPO prices might be affected by the eurozone debt problem and the weakening ringgit.

“The futures market may also follow the performance of the Chicago Board of Trade (CBOT),” she added.

She also said that an upcoming conference on CPO in India which would provide the outlook of the CPO market in the second half on this year would also affect the futures prices.

For the week just ended, futures prices recorded gains on most of the trading days aided by the steady performance of CBOT and the favourable stock and output numbers for August released by the Malaysian Palm Oil Board (MPOB) on Monday.

On a weekly basis, October 2011 gained RM12 to RM3,099 per tonne from RM3,087 per tonne, November 2011 increased RM28 to RM3,078 per tonne from RM3,050 per tonne and December 2011 rose by RM31 to RM3,070 per tonne from RM3,039 per tonne.

Turnover rose to 91,385 lots from from 82,057 lots while open interest increased to 141,333 contracts from 134,634 contracts.

On the physical market, September South dipped RM20 to RM3,120 per tonne from RM3,140 per tonne.

The market closed Friday for Malaysia Day holiday. — Bernama

Source: Business Times

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