Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives are
likely to extend their upside trend next week, but gains could be
limited due to profit-taking, dealers said.
A dealer said the CPO price was likely to move between RM3,800 and RM4,000 per tonne next week.
MIDF Research, in its equity note, said demand would spike in the short
term and growth would be steady in the long term supported by strong
demand from China and India.
The research house said consumption in China was expected to increase by eight per cent this year and 10 per cent in India.
MIDF Research said the CPO price was likely to hit RM4,000 per tonne in
the first quarter this year, driven by strong demand for the coming
Chinese New Year, which falls on Feb 3.
A dealer the market
players would remain on the sidelines ahead of the release of Malaysian
palm oil stocks by the Malaysia Palm Oil Board on next Monday.
For the week just-ended, the CPO prices were traded mostly higher except
on Wednesday and Friday when the market retreated on profit-taking and
to the downtrend in other commodities.
On Thursday-to-Friday
basis, January 2011 declined RM14 to RM3,800 per tonne, February 2011
slipped RM20 to RM3,800, March 2011 dropped RM25 to RM3,763 and April
2011 fell RM33 to RM3,735.
Turnover declined to 91,906 lots from 55,382 last week while open position slipped to 90,806 contracts from 87,737 previously.
On the physical market, the January South contract ended the week at RM3,820 per tonne. — Bernama
Source : Business Times
