Profit-taking Seen in Palm Oil Market this Week

KUALA LUMPUR: Profit-taking activities coupled with an anticipated increase in output is expected to set in this week on the crude palm oil (CPO) futures market, erasing gains recorded in the holiday-shortened week.

Interband Group Senior Palm Oil Trader Jim Teh said prices would hover between RM2,200 per tonne and RM2,300 per tonne.

“April stocks are also expected to increase by 15% from the current inventory of 1.9 million tonnes,” he told Bernama.

Meanwhile, cargo surveyors, Societe General de Surveillance and Intertek Testing Services, are scheduled to release export estimates for the first 25 days of May, which may provide a new impetus for the market.

On a Thursday-to-Friday basis, June 2013 increased RM6 to RM2,340 per tonne, July 2013 added RM33 to RM2,378 per tonne, August 2013 improved RM35 to RM2,371 per tonne and September 2013 gained RM11 to RM2,361 per tonne;

Weekly turnover decreased to 138,108 lots, from 169,143 lots the previous week, while open interest rose to 210,029 contracts against 205,413 contracts recorded previously.

On the physical market, May South ended RM10 higher at RM2,350 per tonne.

The Bursa Malaysia Derivatives market was closed on Friday for the Wesak Day holiday and will resume trading today. – Bernama


Source : The Star

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