The current level of the crude palm oil (CPO) futures prices of between
RM3,200 and RM3,400 per tonne is still sustainable and likely to be
maintained in the near-term, said a dealer.
“For the moment, based on the current market situation, the
resistance level is still sustainable. I don’t think it will go down,”
he added.
He also explained that given the current buying momentum, the price
still has room to increase, saying, volume is generally low and
therefore there are no signs of congestion in the market.
He also said the CPO price uptrend was boosted by the low CPO
output and that of soyoil as well, due to adverse weather conditions and
effects of the recovering global economy.
Cargo surveyor, Intertek Testing Services on Thursday said exports rose
18.9 per cent during the Nov 1-25 period compared with the same period
in October.
Meanwhile, Societe General de Surveillance said exports advanced
24.9 per cent from the previous month, thanks to sustained demand,
especially from China.
“Heavy rain in some parts of Malaysia is likely to delay
harvesting of the crop. Concerns over decreasing stocks and rising
exports also weighed in on prices,” it added.
On a Friday-to-Friday basis, the December 2010 contract rose RM23
to RM3,360 per tonne while the January 2011 contract declined RM44 to
RM3,306 per tonne.
February 2011 slipped RM52 to RM3,274 per tonne and March 2011 dropped RM74 to RM3,243 per tonne.
Volume for the week fell to 99,615 lots from 115,253 lots
previously while the open position rose to 79,077 contracts on Friday
from 75,676 contracts previously.
As for the physical market, the CPO for December shipment was traded
higher at RM3,360 per tonne on Friday versus the RM3,350 per tonne
previously. — Bernam
