Crude
palm oil (CPO) futures on Bursa Malaysia Derivatives is likely to be
firmer next week following easing fears over inflationary pressures in
China and the Ireland financial crisis.
“There will be some speculative play next week as China has
implemented a subsidy system instead of increasing interest rates,
alleviating concerns that the measures may put a constraint on commodity
demand,” a dealer said.
He added that the local edible oil market was still firm with
resistance expected at the RM3,450 per tonne level and strong support at
RM3,200 per tonne.
“The market is still extremely volatile as external leads are determining the mood of the market,” he said.
Meanwhile, another dealer said developments surrounding Ireland’s debt crisis may influence the market as well.
He expects CPO futures contracts to be traded between RM3,100 per tonne and RM3,400 per tonne throughout next week.
According to Bursa Malaysia Derivatives, turnover reached an
all-time high of 41,879 contracts on Thursday, surpassing the previous
record of 37,231 contracts achieved on June 13, 2007.
“The record high achievement is attributed to higher market
volatility, supported by heighted interest by local and international
traders,” Bursa Malaysia Bhd chief executive officer Datuk Yusli Mohamed
Yusoff said in a statement.
On a Friday-to-Friday basis, December 2010 shed RM12 to RM3,337,
January 2011 declined RM3 to RM3,350 and February 2011 lost RM25 to
RM3,326.
Weekly volume was lower at 115,253 lots from last week’s 130,668
lots while open interest stood at 75,676 contracts compared with 74,477
contracts, previously.
On the physical market, November South ended the week RM10 lower at RM3,350. — Bernama
Source : Business Times
