Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to remain bearish on slow buying interest.
Interband Group of Companies senior trader Jim Teh expects futures prices to be traded within a narrow range of between RM3,100 and RM3,150 per tonne next week.
“The market will be happy if the price of CPO futures hovers around RM3,000 per tonne,” Teh told Bernama, adding that China, a major consumer of Malaysian palm oil, had considerably cut back on purchases and bought on a “need-only” basis.
He also said Pakistan has lately been buying palm oil from Indonesia.
“Indonesia’s stock level is around 4 million tonnes while Malaysia’s stocks stood at around 1.9 million tonnes,” Teh added.
On a Friday-to-Friday basis, February 2012 increased RM41 to RM3,093 per tonne, March 2012 rose RM59 to RM3,141 per tonne, April 2012 gained RM46 to RM3,131 and May 2012 added RM50 to RM3,130.
Turnover for this holiday-shortened week fell to 67,361 lots, from 80,344 lots, recorded the previous week.
Open interest on Friday was higher at 116,457 contracts against last Friday’s 111,281 contracts.
On the cash market, February South was RM30 higher at RM3,120 per tonne. — Bernama
Source: Business Times