Palm Futures Face Uncertain Outlook

Crude palm oil (CPO) futures prices are expected to see uncertain trading next week due to the long Hari Raya holidays.

“It is difficult to judge the market movement next week because the holiday is too long. We will see the export data, which will be released next week,” a dealer said.

He said most traders also remained cautious about the possible weakness in external markets during the holidays.

The market will be closed on Monday and Tuesday for Hari Raya. Trade will resume on Wednesday, September 23.

Most traders are also concerned with speculation that exports could slowdown, the dealer said. This will prompt players to cut their positions or restrain them from taking heavy position, he added.

“Slowdown in demand and improved palm oil production is likely to cap prices from moving higher,” the dealer added.

For the week just-ended, October 2009 futures contract increased RM51 to RM2,231 a tonne, November 2009 added RM55 to RM2,200 a tonne while December 2009 gained RM58 to RM2,190 a tonne.

As for January 2010, it was quoted at RM2,210 per tonne. Source : Business Times

Weekly turnover increased to 84,034 lots from last week’s 73,386 lots and open interest rose to 88,636 contracts from 85,950 contracts previously.

On the physical market, September South was unchanged from last week’s closing of RM2,250 per tonne. — Bernama

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