KUALA LUMPUR: Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives are likely to trade above RM2,300 this week, the same like the previous week, said Interband Group Senior Palm Oil Trader, Jim Teh said.

“There are other oils in the world such as oilseed and soyabean and these subtitutes will be a key factor in determining our palm oil prices,” he told Bernama.

Meanwhile, Kuala Lumpur Kepong Bhd chief executive officer, Tan Sri Lee Oi Hian, said the current lower CPO prices (between RM2,300 to RM2,400) will help reduce Malaysia’s high stock which has surpassed two million metric tonnes.

On a Friday-to-Friday basis, spot month April 2013 fell RM24 to RM2,406 a tonne, May 2013 dropped RM30 to RM2,414, June 2013 declined RM34 to RM2,417 and July 2013 stood at RM2,416.

Weekly turnover increased to 173,004 lots from 125,470 lots last week while open interest improved to 199,811 contracts from 187,911 contracts last Friday.

On the physical market, March South lost RM20 to RM2,400 per tonne. – Bernama

Source : The Star