CPO Futures to Rise on Bullish Outlook

Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are expected

to be higher next week given the current bullish oulook for the

commodity, dealers said.

They said market sentiment would

also be supported by higher demand, stronger ringgit and encouraging

export data expected to be released by cargo surveyors.

Experts

told participants of the Palm and Lauric Oil Conference, held last week,

that CPO prices were likely to trade between RM2,800 per and RM3,200

per tonne in the second-half of this year and first-half of 2011.

Malaysian

Palm Oil Council chief executive officer Tan Sri Dr Yusof Basiron also

shared a similar view when he predicted crude palm oil prices will

likely breach the RM3,000 per tonne level towards the second-half of

this year due to production shortfalls.

For the week just-ended, CPO futures recorded a weak performance on lack

of demand and profit taking amid weaker soyoil futures prices.

On

a Friday-to-Friday basis, March rose RM53 to RM2,729, April added RM32

to RM2,709, May gained RM15 to RM2,685 and June perked RM6 to RM2,670.

The total weekly turnover declined to 63,055 lots, from

71,163 lots last week, while open interest rose to 82,037 contracts,

from 81,079 contracts, previously.

On the physical palm

oil market, April South slipped RM10 to RM2,670 per tonne. — Bernama

Source : Business Times

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