CPO Futures Set to Continue Uptrend

Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives are likely to be higher next week on follow-through buying, dealers said.

“The market is likely to continue its uptrend trading due to strong fundamentals,” said Okachi Malaysia’s trading representative Tan Tzer Wei.

However, CPO futures will take the cue from external markets, with euro-zone debt issues also expected to influence local prices, which “are likely to trade between the RM2,470 and RM2,520 range next week”, he said.

For the week just ended, futures prices were traded higher and the momentum is expected to continue to next week.

On a Friday-to-Friday basis, June 2010 increased RM61 to settle at RM2,531 per tonne, July 2010 rose RM55 to RM2,511 per tonne, August 2010 added RM14 to RM2,491 per tonne and September 2010 gained RM81 to RM2,480 per tonne.

The weekly turnover went up to 65,969 lots from 56,647 lots last week while open interest rose to 68,244 contracts against 65,539 contracts previously.

For the cash market, May South was traded lower at RM2,560 per tonne compared to RM2,500 per tonne last week. — Bernama

Source : Business Times

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