Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives are expected to be easier next week, trading around the RM2,450-RM2,500 per tonne level, dealers said.
Interband senior trader Kim Teh said this was due to concern that demand for vegetable oil would be affected following the tightening of China’s monetary policy.
Meanwhile, players adopted a wait-and-see approach ahead of the release of production, exports and stocks data by the Malaysian Palm Oil Board on Monday.
A dealer said with the lower demand expected from both local and overseas previously,last December’s stock would likely be flat compared to November’s.
For the week just-ended, January 2010 shed RM8 to RM2,5708 a tonne, February 2010 decreased RM28 to RM2,592, March 2010 declined RM37 to RM2,626 and April 2010 slipped RM24 to RM2,636.
Turnover rose to 71,052 lots from 51,603 lots last week while open position was lower at 80,208 contracts from 81,268 contracts previously.
On the physical market, the newly-traded January South contract ended the week at RM2,600 per tonne.– Bernama
Source : Business Times