CPO futures likely to see correction

Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives are likely to see a correction next week, says Interband Group of Companies senior trader Jim Teh.

He said there was a need for a correction before a rebound in the next two weeks.

“Therefore, I foresee for the next two weeks the prices to be between RM2,800 and RM3,000,” he told Bernama.

Meanwhile, another dealer said CPO futures price was expected to be trade volatile as buyers looked forward to cargo surveyors, Intertek Testing Services and Societe Generale de Surveillance, to release June 1-20 palm oil export data on Monday.

A dealer said the data would influence the performance f the market next week.

On a weekly basis, July 2011 fell by RM23 to RM3,225 per tonne, August 2011 dropped RM55 to RM3,205, September 2011 eased RM41 to RM3,198 and October 2011 lost RM46 to RM3,194.

Turnover increased to 126,512 lots from 107,012 lots last week and open interest rose to 114,295 contracts from 112,559 contracts previously.

On the physical market, June South ended the week at RM3,240 per tonne. — Bernama

Source : Business Times

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