CPO Futures to Ease on Lack of Leads

Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives are expected to be lower next week in the absence of

positive factors, dealers said.

Jim Teh, senior trader at Interband Group, said the prices for the

benchmark month next week were expected to be around RM3,000 to RM3,150.

He said speculative activities on expectation of higher production and exports had resulted in the current weak price trend.

Another dealer said the market has been speculating on a downtrend

in the prices for a while and it materialised now because of the lack of

fresh leads.

“I think the prices of RM3,200 – RM3,000 would be sustainable based on the current market environment,” he said.

On a Friday-to-Friday basis, April 2011 declined RM74 to RM3,360 per

tonne, May 2011 fell RM120 to RM3,289, June 2011 slipped RM163 to

RM3,236 and July 2011 decreased RM157 to RM3,233.

Weekly turnover rose to 140,925 lots from 111,816 lots last week

while open interest advanced to 107,393 contracts from 98,009 contracts

previously.

On the physical market, April South fell by RM150 to RM3,300 per tonne. — Bernama

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