CPO Futures to be Supported at RM3,450

Crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives are likely to be traded in a similar range next week, dealers said.

One dealer is bullish on the performance of the futures contracts next week, expecting the prices to be supported at the level of RM3,450 per tonne.

“The prices of the CPO futures contracts would move at similar level as the week just ended with support level at RM3,450 per tonne,” she said.

According to her, export data for April 1-25 to be released by cargo surveyors ITS and SGS on April 25 are expected to boost prices of the futures contracts.
Meanwhile, Interband Group of Companies senior palm oil trader Jim Teh said the price of the CPO physical is likely to be traded at between RM3,200 and RM3,300 per tonne.

“External sentiments including developments in the eurozone would continue to have an impact on the local CPO market,” he told Bernama.

Teh said slower economic growth in China and India is another factor that would affect investor sentiment on the commodity.

Throughout the week just-ended, the market was traded mixed with prices moving between RM3,460 per tonne and RM3,515 per tonne.

May 2012 fell RM2 to RM3,515 per tonne, June 2012 was unchanged at RM3,510 per tonne while July 2012 gained RM3 to RM3,500 per tonne.

The week’s turnover increased to 149,633 lots from 111,371 lots recorded for the previous week, while open interest was higher at 115,733 contracts, compared to 110,645 contracts registered previously.

On the physical market, April South lost RM10 to 3,520 per tonne. — Bernama

Source: Business Times

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