Crude palm oil (CPO) futures on Bursa Malaysia Derivatives is likely to consolidate this week after having beached a two-year high last week, dealers said.

The benchmark third-month CPO contract, Jan 2011 surged RM83 to RM3,273 per tonne on Monday, a level last seen on July 18, 2008.

CPO prices remained firm throughout the week, except on Friday when the market retreated on profit taking and to the downtrend in other commodities.

On a Friday-to-Friday basis, the Nov 2010 and Dec 2010 contracts surged RM157 each to RM3,337 and RM3,349 per tonne, respectively while Jan 2011 jumped RM162 to RM3,353 and Feby 2011 advanced RM156 to RM3,351.

Total volume increased to 130,668 lots from the previous week’s 62,299 lots while open interest stood at 74,477 contracts compared with 72,289 contracts previously.

On the physical market, November South was RM160 higher at RM3,360 per tonne from RM3,200 per tonne the week before. – Bernama

Source: The Star