Crude palm oil (CPO) futures on Bursa Malaysia Derivatives is expected to be range-bound next week with prices likely to be confined between RM2,400 per tonne and RM2,500 per tonne, dealers said.
Investors were still concerned over rising stocks while China reduced palm oil purchases as its stock stood above 350,000 tonnes.
The Malaysian Palm Oil Board (MPOB) said total palm oil stocks rose 15.72 per cent to 2.238 million tonnes in December 2009 from 1.934 million tonnes recorded a month earlier.
However, another dealer said market players were awaiting the release of Jan 1-25 export data, due next week, by Intertek Testing Services and Societe Generale de Surveillance to provide fresh leads to the market.
The local CPO market would also closely track other vegetable oil markets for direction, he added.
On a Friday-to-Friday basis, January 2010 dropped RM18 to RM2,449 per tonne, February 2010 declined RM34 to RM2,456 per tonne, March 2010 lost RM40 to RM2,455 per tonne and April 2010 fell RM44 to RM2,452 per tonne.
The week’s turnover declined to 97,631 lots from last week”s 111,844 lots.
Open position increased to 75,539 contracts on Friday from 75,701 contracts registered at the end of last week.
On the physical market, January South was RM10 lower at RM2,480 per tonne. — Bernama
Source : Business Times
