Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives are expected to be uncertain next week on cautious trading with prices expected to be in the current range, dealers said.
A dealer said the outcome of the United States Department of Agriculture’s quarterly inventory report and planting forecast yesterday as well as continuous overseas demand amid tight supply would influence the edible oil’s price movement next week, a dealer said.
He said soybean supply fears in South America would lend support.
The local market is seeking a fresh direction following continuous profit-taking activities after starting the week strongly, he added.
Throughout the week, the market was mixed following better demand and traders booking profit.
The stong export data for the first 25 days of the month and concern over drought-reduced crops in South America, with the benchmark June palm oil futures hitting a new one-year high of RM3,497 per tonne on Tuesday, prompted profit-taking.
Compared to last week, April 2012 rose RM10 to end the week at RM3,480 per tonne, May 2012 added RM13 to RM3,449 per tonne, June 2012 went up RM7 to RM3,433 per tonne while July 2012 decreased RM4 to RM3,411 per tonne.
The week’s turnover declined to 87,429 lots from 131,755 lots recorded last week while open interest went down to 89,172 contracts from 122,586 contracts.
On the physical market, April South was higher at RM3,470 per tonne compared with RM3,410 per tonne last Friday. — Bernama