Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are expected to continue their uptrend next week, driven by tight supply and higher soyoil prices, dealers said.
A dealer said the market would remain bullish despite uncertainty in the eurozone and concerns over export prospects if the crisis prolonged.
“The market is expected to break the resistance level of RM3,260 next week,” she said.
She said two cargo surveyors, Societe Generale de Surveillance and Intertek Testing Services, are also expected to publish export data for the Feb 1-Feb 20 period.
Meanwhile, Interband Group of Companies senior trader Jim Teh expects the continuous uptrend in the market to attract profit taking, saying the prices might be lower due to the activities but they would not go lower than RM3,100.
“The market has been excellent this week and supposedly next week too.
“But I expect profit taking to take place next week and prices to go down but still hover around RM3,100 to RM3,200,” he told Bernama today.
On a Friday-to-Friday basis, February 2012 advanced RM120 to RM3,213 per tonne, March 2012 went up RM90 to RM3,231 per tonne, April 2012 rose RM111 to RM3,242 and May 2012 gained RM109 to RM3,242.
Turnover for the week increased to 122,937 lots from last week’s 67,361 lots and open interest climbed to 127,082 contracts from 116,457 contracts previously.
On the cash market, February South was RM80 higher at RM3,200 per tonne. — Bernama
Source: Business Times