Crude palm oil (CPO) futures on Bursa Malaysia Derivatives is expected to remain firmer next week, dealers said.

The dealers also said the commodity futures would likely remain above RM3,000.

CPO prices inched above RM3,000 per tonne this week following a strong, emerging market demand.

A dealer said the market is also waiting for more signs of an increase in demand from China.

Another dealer said the market would move in line with soyoil prices on the Chicago Board of Trade amid continued buying momentum.

Local palm oil output remained modest amid the uncertain weather conditions while the stockpile is expected to decline, he added.

During the week, CPO prices were mostly higher in line with other vegetable oil markets, a weak US dolar and strong export data.

On Wednesday, Malaysia’s palm oil export figures released by cargo surveyor Societe Generale de Surveillance for Oct 1-20, rose 5.4 per cent to 929,473 tonnes from the 881,812 tonnes shipped from Sept 1-20.

On a Friday-to-Friday basis, November 2010 rose RM82 to RM3,012 per tonne, December 2010 added RM75 to RM3,005 per tonne, January 2011 increased RM69 to RM3,005 per tonne and February 2011 increased RM66 to RM3,002.

The week’s turnover stood at 87,038 lots, down from last week’s 106,400 lots while the open position rose to 70,127 contracts on Friday from 68,320 contracts previously.

On the physical market, October South was traded higher at RM3,020 per tonne on Friday compared with RM2,940 per tonne previously. — Bernama

Source: Business Times