Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives are likely to be steadier next week, extending last week’s uptrend, dealers said.
“Currently, demand for the local CPO is a bit slow, but the positive fundamentals of the commodity will help push prices higher,” he said.
He also said the price has fallen on correction and is now pointing at a further upside.
“If the same situation persists, prices can settle at above the RM2,700 level before year-end,” he added.
According to the dealer, the market has recently been overbought,improving gradually on a better demand-supply outlook.
He stated that most analysts believe the local CPO will end the year on a bullish note.
Another dealer said the market was also awaiting the export data for the first 20 days of December, to be released on Monday by cargo surveyors.
The trader said the data is expected to influence price performance.
Cargo surveyor Societe Generale de Surveillance on Tuesday said the first 15 day of the month exports of Malaysian palm oil products, dropped 12.7 per cent to 626,934 tonnes from the 717,936 tonnes shipped between Nov 1 and 15.
Meanwhile, Intertek Testing Services highlighted that exports of Malaysian palm oil products during the period fell 9.5 per cent to 609,874 tonnes from the 674,148 tonnes shipped between Nov 1 and 15.
The market was closed on Friday for the Awal Muharram holiday.
As for the week just ended, the CPO futures market traded mostly higher, supported by a stronger crude oil and soy oil markets.
The spot month January 2010 increased RM62 to settle at RM2,556 a tonne and February 2010 rose RM74 to RM2,604 a tonne.
March 2010 went up RM76 to RM2,620 per tonne while the contract month of April 2010 just started on Thursday at RM2,613.
Total turnover for the week declined to 58,925 lots compared with 82,480 lots last week while open interests stood at 82,960 contracts against the 85,822 contracts previously.
On the physical palm oil market, December South stood at RM2,580 a tonne, higher than last Friday”s RM2,460. — Bernama Source: Business Times]]>