Steadier CPO Futures Mart Expected

Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives are

likely to be steadier next week in line with the uptrend in commodity

prices, dealers said.

They said CPO prices would be strongly influenced by the movement

of soyoil and global crude oil prices.

Soyoil and palm oil compete for the same export destinations and

their prices usually move in tandem.

The release of palm oil export data by the Malaysian Palm Oil Board

and two other cargo surveyors next week, Intertek Testing Services and

Societe Generale de Surveillance, would help boost the price, a dealer

said.


The price is expected to range between RM2,450 per tonne and RM2,550

per tonne next week, the dealer said, adding that any losses could be

due to the strengthening of the ringgit.

Throughout the week, the price remained attractive, amid a

volatile market.

On Friday-to-Thursday basis, June 2010 rose RM41 to close at

RM2,560 per tonne, July 2010 went up RM15 to RM2,515 per tonne, August

2010 increased RM17 to RM2,474 per tonne while September 2010 rose RM19

to RM2,448 per tonne.

Total turnover increased to 54,681 lots from 46,149 lots last week

while open interests was lower at 69,501 contracts from 70,974 contracts

previously.

On the physical market, the June South contract ended the week at

RM2,570 per tonne compared to RM2,560 per tonne last Thursday. —

Bernama

Source : Business Times

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