CPO Futures to be Rangebound

Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are expected

to see range-bound trading next week, dealers said.

They said weaker soyaoil prices and strong ringgit would curb gains

in the prices.

“There is also market talk that palm oil production will rise this

month following heavy rains recently and this will influence buying

sentiment,” a dealer said.

The CPO prices are expected to trade between RM2,500 and RM2,600 per

tonne next week.

During the week just-ended, the market had seen range-bound trading due

to bearish external markets.

Weaker crude and soyaoil prices had prompted selling in the CPO


On a Friday-to-Friday basis, the April 2010 contract fell RM21 to

RM2,599 per tonne, May 2010 declined RM18 to RM2,565, June 2010 dropped

RM43 to RM2,534 and July 2010 eased RM44 to RM2,521.

Total turnover declined to 63,462 lots from 95,505 last Friday and

open interests fell to 78,501 contracts from 81,225 previously.

On the physical palm oil market, April South stood at RM2,610 per

tonne on Friday. — Bernama

Source : Business Times

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