CRUDE palm oil futures on Bursa Malaysia Derivatives are expected to see
rangebound trading this 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 rangebound 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 a tonne, October
2010 rose RM2 to RM2,702 per tonne, November 2010 edged up RM1 to
RM2,645 a 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 a tonne. – Bernama
Source : Business Times
