Crude palm oil (CPO) futures on Bursa Malaysia Derivatives will likely consolidate and hover between RM3,230 and RM3,300 per tonne next week with global growth concerns expected to influence market sentiment, dealers said.
Oil prices which had been gaining for the fifth straight week, and demand from China, the world’s second largest palm oil importer, are expected to decrease as high stock levels are likely to influence market movement next week, a dealer said.
He said the increasing oil price had triggered worries among investors as it would curb demand and indirectly affect global growth.
“However, seasonal tight supply is expected to support the movement,” he said.
For the week-just-ended, the commodity was traded mostly higher on improved buying interest.
According to cargo surveyors Intertek Testing Services and Societe Generale de Surveillance respectively, Malaysian palm oil exports for the first 20 days of February fell two per cent and 0.6 per cent from a month ago.
Meanwhile, world’s largest palm oil producer Indonesia will keep its palm oil export tax unchanged at 16.5 per cent and its refined palm olein tax at eight per cent for March.
On a Friday-to-Friday basis, March 2012 advanced RM1 to RM3,232 per tonne, April 2012 dropped RM18 to RM3,260 per tonne, May 2012 gained RM37 to RM3,276 per tonne and June 2012 stood at RM3,272 per tonne.
Turnover for the week increased to 127,082 lots from last week’s 122,937 lots and open interest declined to 123,129 contracts from 127,082 contracts previously.
On the physical market, March South advanced to RM3,240 per tonne from February South’s RM3,200 per tonne previously.
Source: Business Times