Crude
palm oil (CPO) futures on Bursa Malaysia Derivatives is expected to be
firmer next week due to adverse weather conditions, dealers said.
They said the market would also move in line with soyoil prices on
the Chicago Board of Trade amid continued buying momentum from China,
Europe and India.
“The on-going soybean harvesting in North America, which would see a
bumper crop, and weather developments in South America might affect
commencement of planting schedule,” an analyst said.
The analyst said local palm oil output remained modest amid the
uncertain weather condition while stockpile was expected to decline in
the seven months through July.
During the week, CPO prices were higher in line with other commodities prices.
CPO prices climbed to a 16-month high due to growing demand, supply cutback and excess rain which was hurting harvest.
On a Friday-to-Friday basis, October 2010 rose RM4 to RM2,746 per
tonne, November 2010 added RM30 to RM2,729 per tonne, December 2010
increased RM32 to RM2,733 per tonne and January 2011 increased RM37 to
RM2,741.
The week’s turnover stood at 89,219 lots, up from last week’s
62,672 lots while open position rose to 68,718 contracts on Friday from
65,708 contracts previously.
On the physical market, October South was traded higher at RM2,750
per tonne on Friday compared with RM2,740 per tonne last Friday. —
Bernama
Source : Business Times
