KUALA LUMPUR, Sept 12 (Bernama) — Trading in crude palm oil (CPO) futures is expected to be volatile on Bursa Malaysia Derivatives next week as investors continue to remain concerned over the slowdown in exports, dealers said.
Speculation that palm oil production will rise this month also encouraged players to cut their positions.
” Slowdown in demand and improved palm oil production is likely to cap prices from moving higher,” a dealer said.
Cargo surveyor Intertek Testing Services reported on Thursday that Malaysian palm oil exports between Sept 1 and Sept 10,2009 fell 14.5 per cent to 313,282 tonnes from 366,352 tonnes exported in the same period last month.
Another cargo surveyor, Societe Generale de Surveillance, announced that Malaysian palm oil exports for the first 10 days of September declined 17.1 per cent to 332,392 tonnes from 400,871 tonnes shipped during the same period in August.
The Malaysian Palm Oil Board also announced on Thursday said palm oil production for August was up 6.22 per cent to 1.415 million tonnes against July’s output of 1.332 million tonnes.
For the week just-ended, September 2009 futures contract fell RM78 to RM2,210 per tonne, October 2009 declined RM44 to RM2,180 per tonne, November 2009 slipped RM52 to RM2,145 per tonne while December 2009 eased RM58 to RM2,132 per tonne.
Weekly turnover increased to 73,386 lots from last week’s 59,647 lots and open interest declined by 39 contracts to 85,950 contracts.
On the physical market, September South declined RM70 to end at RM2,250 per tonne. Source : BERNAMA]]>