KUALA LUMPUR, Aug 1 (Bernama) — Crude Palm Oil (CPO) futures prices on Bursa Malaysia Derivatives are expected to be steady next week with the coming Hari Raya Aidilfitri, dealers said.
They said the local market was also expected to take the cue from the US soyaoil price movements as both markets competed for the same destination.
Another dealer, however, expected CPO prices to decline following Indonesia’s move to cut palm oil export tax to zero in August from three percent previously.
“The move means that the commodity will flood the market,” he said.
However, he said, it was not expected to affect the CPO market now as demand for the commodity was still strong.
On a Friday-to-Friday basis, August 2009 rose RM115 to RM2,274 per tonne, September 2009 increased RM79 to RM2,205, October 2009 added RM67 to RM2,189 and November 2009 gained RM68 to RM2,184.
Total weekly turnover increased to 73,047 lots from 72,673 lots last week and open interests increased to 82,346 contracts against 81,477 previously.
On the physical palm oil market, August South stood at RM2,280 per tonne.
Source : Bernama