Overseas Buying to Lift Palm Futures

Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives is likely to be higher next week, led by overseas buying, dealers said.

They said investors are expecting higher demand from China and India in respect of stockpiling, with the upcoming Deepavali and Christmas holidays.

However, a dealer said prices are expected to move within a tight range as investors are still cautious amid concerns over the pace of the global economic recovery.

The local market will also track the movement of soyoil prices on the Chicago Board of Trade and the Dalian Commodity Exchange.

For the week just-ended, the October 2009 futures contract increased RM4 to RM2,235 a tonne, November 2009 added RM1 to RM2,201 a tonne while December 2009 declined RM4 to RM2,186 a tonne and January fell RM33 to RM2,177 per tonne.

The weekly turnover declined to 42,878 lots from last week”s 84,034 lots and open interests rose to 89,892 contracts from 88,636 contracts previously.

On the physical market, September South had expired while October South was at RM2,250 per tonne. Source : Business Times

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