Palm Futures May Be Rangebound

Crude palm oil (CPO) futures on Bursa Malaysia Derivatives is expected to remain rangebound next week due to the extended festive and year-end holidays, dealers said.

However, a dealer said CPO prices is expected to move in tandem with stronger soyoil prices on the Chicago Board of Trade.

Market sentiment is expected to receive a continious boost by the uptrend in crude oil prices which will contribute to firmer CPO prices, the dealer added.

For the just-ended week, the market was lower in the absence of investors except for short covering activities on Thursday which saw the market rebound from earlier losses.

Meanwhile, Intertek Testing Services reported that exports of Malaysian palm oil products between December 1 and December 20 declined 7.7 per cent to 858,307 tonnes from 930,133 tonnes shipped in the same period last month.

Another cargo surveyor, Societe Generale de Surveillance, announced a 7.4 per cent drop in exports to 884,042 tonnes in the same period from a month ago.

The market was closed on Friday for Christmas.

On a weekly basis, January 2010 was down RM60 to RM2,496 per tonne, February 2010 decreased RM70 to RM2,537 per tonne, March fell RM66 to RM2,554 per tonne and April 2010 eased RM59 to RM2,554.

Turnover increased to 59,828 lots, from 58,925 lots previously, while open position stood at 84,580 contracts on Thursday from 82,960 contracts previously.

On the physical market, December South was ended lower at RM2,500 per tonne on Thursday versus RM2,580 per tonne last week.

There was nil trading in the crude palm kernel oil futures market throughout the week. — Bernama Source: Business Times

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