CRUDE palm oil (CPO) futures on Bursa Malaysia Derivatives are likely to
consolidate after hitting a 15-month high last week, dealers said.
“The CPO market is currently volatile and perhaps, it could see some mild consolidation this week,” one of them said.
He said that based on the current trend, prices could hover around RM2,690 and RM2,850 per tonne.
Lingering concerns over the slowdown of the global economic recovery
after the United States Federal Reserve downgraded its economic outlook
raise worries among investors.
“All these fears would have an impact on the behaviour of commodities
buyers, especially on our CPO market who are mostly international
buyers,” he added.
Another dealer said concerns over tight
supply of rival soya bean due to hot weather in the US could lend
support to palm oil prices.
At the moment, most buyers adopt a
wait-and-see attitude ahead of palm oil export numbers for the first 15
days of August, which are due for release by cargo surveyors today.
On a Friday-to-Friday basis, the August 2010 contract went up by RM43
to RM2,795 per tonne and September 2010 advanced RM83 to RM2,780 per
tonne.
The October 2010 contract gained RM57 to RM2,718 per tonne and November 2010 added RM39 to RM2,690 per tonne.
A total of 99,077 lots were transacted last week, up from last week’s 79,034 lots.
On Friday, open interest stood at 63,861 contracts compared with 66,617 contracts at the end of the previous week.
As for the cash market, August South climbed RM140 to RM2,820 per tonne from RM2,680 per tonne previously week. – Bernama
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