Crude palm oil (CPO) futures on Bursa Malaysia Derivatives is expected
to remain rangebound next week due to volatile conditions in the global
economy, dealers said.
They said demand for vegetable oil would be affected following the
tightening of monetary policy by authorities around the world to help
curb inflation that has sparked market concern.
Meanwhile, players are also adopting a wait-and-see approach ahead
of the release of production, exports and stocks data by the Malaysian
Palm Oil Board on Tuesday.
Other stock data on the same day are from two cargo surveyors, Intertek Testing Services and Societe General de Surveillance.
A dealer said Malaysia’s exports in the first ten days would likely be higher, underpinned by steady demand from India.
CPO prices are expected to move in tandem with that of soyoil prices on the Chicago Board of Trade.
For the week just ended, the market was lower in the absence of investors, except for short covering activities.
The market was closed on Monday for Labour Day.
On a weekly basis, May 2011 was up RM5 to RM3,375 per tonne, June
2011 decreased RM25 to RM3,275 per tonne, July 2011 fell RM34 to RM3,195
per tonne and August 2011 eased RM38 to RM3,187.
Turnover increased to 99,812 lots from 92,653 lots previously,
while the open position stood at 110,527 contracts on Friday from
103,663 contracts previously.
On the physical market, May South ended lower at RM3,350 per
tonne on Friday versus the RM3,380 per tonne last week. — Bernama