Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives are expected to move at current levels amid expectations of lower demand particularly from India, dealers said.
They said trading was expected to be cautious over reports that the Indian government would impose import taxes on palm oil and soyaoil as part of the budget due to be presented on July 6.
The dealers said investors would also await the release of first 10 days of July export and production figures to be released next week.
“Lower export numbers are expected,” they said.
As for June, cargo surveyor Societe Generale de Surveillance reported during the week that exports of palm oil products were nearly flat at 1,227,663 tonnes.
Meanwhile, cargo surveyor Intertek Testing Service reported that exports of palm oil products for last month only rose 1.6 per cent to 1,230,741 tonnes, compared to the previous month.
The market was lower throughout the week, except on Wednesday.
On a week-to-week basis, July 2009 fell RM150 to RM2,195 per tonne, August 2009 shed RM135 to RM2,190 per tonne, September 2009 eased RM144 to RM2,175 per tonne and October 2009 slipped RM145 to RM2,170 per tonne.
Turnover decreased to 69,303 lots from 80,820 lots last week while open interests on Friday declined to 62,691 contracts from 64,520 contracts previously.
On the physical market, July South stood at RM2,160 per tonne on Friday while June South at last week Friday stood at RM2,350. – Bernama
Source : Business Times