Crude Palm Oil Prices Expected to Trade Lower This Week

KUALA LUMPUR: Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives are expected to trade lower this week amid quiet conditions and in the absence of positive factors, dealers said.

Interband Group of Companies senior palm oil trader Jim Teh said investors were avoiding risky moves ahead of the release of export data for March this week with CPO prices to trade between RM2,200 a tonne and RM2,300 a tonne.

CPO inventories in February in Malaysia fell five per cent to 2.44 million tonnes from January, and posted a record high of 2.63 million tonnes in December due to strong production and reduced global demand.

Throughout the week just ended, the market was traded mostly lower with prices moving between RM2,368 a tonne and RM2,464 a tonne.

April 2013 fell RM120 to RM2,340 a tonne, May 2013 dropped RM117 to RM2,368 a tonne, June 2013 decreased RM115 to RM2,378 a tonne and July 2013 was down by RM108 to RM2,387 a tonne.

The week’s turnover declined to 157,788 lots from 194,413 lots recorded in the previous week, while open interest was lower at 176,611 contracts, compared to the 213,168 contracts registered in the previous week.

On the physical market, March South lost RM90 to RM2,370 per tonne. – Bernama


Source : The Star


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