Crude palm oil (CPO) futures contract on the Malaysia Derivatives
Exchange is likely to see rangebound trading next week.
Although
the market firmed this week on higher crude oil and soyoil prices, the
movement of prices next week would depend on improvements in the Greek
sovereign debt crisis and a better economic outlook in general.
“I
would expect prices to hover between RM2,540 and RM2,650 next week,” a
local dealer said.
The market kicked-off the week on an upbeat
note but retreated sharply for three consecutive days thereafter,
triggered by the strengthening ringgit and drop in crude oil prices.
On a Friday-to-Friday basis, May 2010 rose RM26 to RM2,577, June
2010 lost RM4 to RM2,541, July 2010 increased RM27 to RM2,558 and August
2010 jumped RM24 to RM2,549.
However, total turnover
dropped to 62,342 lots from 73,794 lots last week while open interest
declined to 63,191 contracts from 67,455 contracts peviously.
On
the physical market, April South rose RM20 to RM2,580 per tonne. —
Bernama
Source : Business Times
