ended firmer yesterday despite players being cautious of higher CPO
stocks in June, dealers said.
Interband group’s senior trader,
Jim Teh, said buyers were also unwilling to pay at current prices as
they were waiting for prices to drop to the RM2,200 to RM2,000 level
before entering the market.
On Monday, the Malaysian Palm Oil
Board (MPOB) is scheduled to release June’s import, export, production
and stock figures, while Cargo surveyors Intertek Testing services and
Societe Generale de Surveillance are due to release export estimates for
the first 10-days of July.
“It’s a peak period. I think June’s output may reach 1.9 million metric
tonnes,” he said. In May, CPO output 6 per cent month on month to 1.39
million metric tonnes.
Meanwhile, another dealer said if crude
oil prices remained at current levels coupled with a higher production
cycle towards year-end, there may be an impact on prices.
CPO
prices are expected to hit RM2,270 per tonne over the next two or three
months based on the current crude petroleum oil price of US$75 (US$1.00
= RM3.26) per barrel.
Concerns about the global economic
recovery would also weigh on prices, he added.
The July
2010 contract closed RM22 higher at RM2,420 per tonne, August 2010 rose
RM25 to RM2,330 per tonne, September 2010 added RM19 to RM2,289 per
tonne and October 2010 edged up RM25 to RM2,275 per tonne.
Volume
for the day was higher at 14,577 lots compared with Wednesday’s closing
of 13,888 lots while open interest fell to 74,093 contracts from 74,304
contracts previously.
On the physical market, July South
stood at RM2,410 per tonne versus RM2,390 per tonne previously.
Source : Business Times
