Crude
palm oil futures on Bursa Malaysia Derivatives are expected to see
range-bound trading next week, especially with continuous appreciation
of the ringgit, dealers said.
A dealer, however, said the stable level of the palm oil stocks in the country could help mitigate the rising cost.
The Malaysian Palm Oil Board on Wednesday reported that palm oil
stocks in August 2010 rose 22.59 per cent to 1.723 million tonnes from
1.406 million tonnes the previous month.
“The improvement in the stock level will also likely help stabilise the commodity price,” said the dealer.
For the week just-ended, the market saw range-bound trading as some
traders accumulated and relinquished their holdings on concern over
rising cost of exports.
The market was closed on Thursday for Malaysia Day celebration.
On a weekly basis, September 2010 expired at RM2,820 per tonne,
October 2010 rose RM2 to RM2,702 per tonne, November 2010 edged up RM1
to RM2,645 per tonne and December 2010 improved RM4 to RM2,627.
New contract, January 2011, meanwhile stood at RM2,620 a tonne.
Weekly turnover improved to 64,680 lots from 56,092 lots last week
while open interest stood at 68,199 contracts from 63,658 contracts last
Thursday.
On the physical market, September South declined RM50 to RM2,730 a tonne from RM2,780 per tonne. — Bernama
Source : Business Times
