KUALA LUMPUR: Crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives would likely experience cautious trading nest week at between RM2,600 to RM2,700 per tonne with anticipation of speculative buying.
Interband Group of Companies Senior Palm Oil Trader Jim Teh said next week’s market sentiment is expected to be cautious on an uncertain global economic environment.
“Traders have started to book the Ramadan stock this week so we expect the demand will be a little bit slower next week,” he told Bernama today.
However, he said, the price range is still good compared with other commodities, which are expected to experience a downtrend next week.
Palm prices are set for the biggest weekly gain in three weeks, after stronger-than-expected export data lifted the market to the highest level in over two weeks.
Exports are expected to remain strong upon the upcoming festive season, which should be supportive for the palm market.
Cargo surveyor data showed that shipments of Malaysian palm products jumped 23-28 per cent in the first half of May compared with a month ago, with bigger purchases from India, Pakistan, and Europe.
On a Friday-to-Friday basis, June 2014 rose RM25 to RM2,629 per tonne, July 2014 added RM15 to RM2,592 per tonne, August 2014 climbed RM13 to RM2,580 per tonne while September improved RM14 to RM2,574 per tonne.
Weekly turnover slipped to 117,248 lots from 161,299 lots last week, while open interest widened to 214,777 contracts from 209,203 contracts previously. On the physical market, May South was flat at RM2,650 per tonne. – BERNAMA
Source : The Star