Crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives are
expected to continue the uptrend next week driven by positive
sentiments from the external market and export data, dealers said.
They said the uptrend would continue unless short covering occurred.
A dealer said cargo surveyors, Intertek Testing Services and
Societe General de Surveillance, were scheduled to release the export
data for the period of May 1-25 on May 25.
He said the higher soyaoil prices due to the bad weather in the
major producers country were also expected to support CPO prices.
However, Jim Teh, senior trader of Interband Group of Companies, said the current prices were too high for physical traders.
“CPO prices need to be around RM3,200 to RM3,300 per tonne for physical traders to return to the market,” he told Bernama.
He said there were plenty of stocks currently but the prices were too high.
“The prices need to go down in order to clears actual physical stocks,” Teh said.
For the holiday-shortened week, June 2011 added RM112 to RM3,477
per tonne, July 2011 went up RM147 to RM3,422, August 2011 moved up
RM141 to RM3,390 and Sept 2011 gained RM139 to RM3,379.
Turnover dipped to 94,638 lots from 125,813 lots, previously, while
open interest slipped to 105,668 contracts against 112,707 contracts
recorded on Friday last week.
On the physical market, June South stood at RM3,460 per tonne.
The market was closed on Tuesday for Wesak Day. — Bernama