Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives is expected to strengthen next week with the market looking for clues from the three-day Palm and Lauric Oils Conference & Exhibition Price Outlook 2011, beginning Monday.
Dealers said the conference is expected to report good prospects with industry players giving valuable insights into the future price direction of edible oils and challenges in the industry.
A dealer said global demand for biodiesel from European nations could also lead to higher palm oil prices due to the unrest in the Middle East and North Africa.
“All these factors provide positive impetus and will boost investor sentiment,” the dealer added.
Meanwhile, Interband Group of Companies Senior Trader Jim Teh forecast prices to trade between RM3,400 and RM3,500 per tonne.
“We are happy with current prices which is better than the industry expectation of RM3,000 per tonne,” he said.
For the week just-ended, spot month March rose RM144 to RM3,709 per tonne, April gained RM147 to RM3,689 per tonne, May increased RM145 to RM3,660 per tonne and June added RM135 to RM3,630 per tonne.
Turnover, however, decreased to 131,125 lots from 164,998 lots last week.
Open interest decreased to 99,966 contracts versus 107,659 contracts previously.
On the physical palm oil market March South ended RM80 higher at RM3,710 per tonne. — Bernama
Source : Business Times