Palm Futures Set to Perform Better

Crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives are anticipated to perform better next week as the market is expecting friendly export data which will provide a boost to the local market. “The market expects export data for Oct 1-31 to be released next week. It will be a friendly report,” a dealer said. She added that the market expected the futures contracts to record higher prices. Jim Teh, Interband Group of Companies Senior Palm Oil Trader, said prices were anticipated to hover between RM2,700 and RM2,800 a tonne.

The futures contracts performed steadily throughout the four-day trading week, recording gains on most of the days except on Friday due to profit-taking activities. On a Friday-to-Friday basis, November 2011 gained RM90 to RM2,971 a tonne, December 2011 increased RM87 to RM2,973 a tonne, January 2012 added RM88 to RM2,971 a tonne while February 2012 advanced RM89 to RM2,973 a tonne. Weekly volume expanded to 40,175 lots recorded on Friday from 21,057 lots recorded for the previous Friday while open interest declined to 129,162 contracts from 138,673 contracts registered on the previous Friday. On the physical market, October South gained RM100 to RM2,990 a tonne. — Bernama

Source: Business Times

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