Palm Futures May Face Profit-Taking

Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives are expected to face profit-taking next week, dealers said.

They said most traders were likely to stay away in early trading next week to await the release of the September production reports.

A dealer said the reports were expected to be weak.

“Market experts believe that production for the months is likely to be between the 1.5 million and 1.52 million tonnes level,” he said.

He said the market was expected to test the RM2,000 a tonne support level and resistance at RM2,100 a tonne.

For the week just ended, the CPO futures market was traded mixed.

On a week-to-week basis, October 2009 decreased RM1 to RM2,129, while November added RM52 to RM2,100, December went up RM48 to RM2,085 and January 2010 rose RM50 to RM2,082 a tonne.

The week’s turnover stood at 80,229 lots, up from last week’s 68,643 lots while open positions narrowed to 93,504 contracts on Friday from 94,276 contracts at the end of the previous week.

On the physical market, October South was traded lower by RM20 at RM2,130 a tonne. – Bernama Source : Business Times


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