CPO Futures Seen Steadier Next Week

Crude palm oil (CPO) futures prices on the Malaysia Derivatives Exchange are expected to be higher next week on expectation of improving export data for April, dealers said.

They said the players expected the export data to exceed 1.4 million tonnes and this would spur buying interest in the CPO futures market.

However, they said, stronger ringgit may cap gains as the commodity price became unattractive, for both hedge funds and importers.

Cargo surveyors, Intertek Testing Services and Societe Generale de Surveillance, will release palm oil export data for Apr 1-25 on Monday.

During the week just-ended, CPO prices were mostly higher on fresh buying as players took the cue from steadier crude oil and soyaoil prices.

On a Friday-to-Friday basis, May 2010 rose RM21 to RM2,561 per tonne, June 2010 increased RM24 to RM2,552 per tonne, July 2010 gained RM22 to RM2,540 per tonne and August 2010 added RM23 to RM2,535 per tonne.

Total turnover increased to 73,794 lots from 58,345 lots last Friday while open interests declined to 67,455 contracts from 71,486 contracts previously.

On the physical market, May South stood at RM2,560 per tonne. — Bernama

Source : Business Times

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