Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are expected to continue their uptrend next week on the back of improving risk appetite boosted by positive developments in the euro zone.
According to reports, Greek Prime Minister George Papandreou was prepared to drop a plan for a nationwide referendum on a European Union bailout package while a rate cut by the European Central Bank had raised hopes for an easing of the region’s debt crisis.
The market applauded the Greek government’s decision to abandon the referendum, dealers said.
On the local front, the market is waiting for a fresh lead in the form of October output and stock data which is due for release by the Malaysian Palm Oil Board (MPOB) next week.
This week, the November 2011 contract gained RM52 to RM3,023 a tonne, December 2011 increased RM45 to RM3,021 a tonne, January 2012 added RM42 to RM3,013 a tonne and February 2012 advanced RM47 to RM3,020 a tonne.
The weekly volume decreased to 104,432 lots from 118,781 lots last week while open interest at the close Friday declined to 109,194 contracts from 129,162 contracts.
On the physical market, Interband Group of Companies Senior Palm Oil Trader Jim Teh said prices were anticipated to hover between RM2,800 and RM2,900 a tonne in view of the rainy season.
The November South contract gained RM40 to RM3,030 a tonne this week.
The market will be closed on Monday in conjunction with the Hari Raya Aidil Adha celebration which falls on Sunday. — Bernama
Source: Business Times