KUALA LUMPUR: Crude palm oil (CPO) futures prices are expected to strengthen further this week amid fears over the soybean oil supply, dealers said.

A dealer said the drought in the United States has affected the soybean oil supply, spurring fears over the commodity’s availability and prices.

However, another dealer said the price hike is expected to attract profit-taking activities.

For the week just-ended, prices rose on three straight days during the holiday-shortened week supported by overseas demand.

On a Friday-to-Friday basis, September 2012 advanced RM132 to RM3,030 per tonne, October 2012 rose RM123 to RM3,051 per tonne, November 2012 increased RM107 to RM3,069 per tonne and December 2012 climbed RM100 to RM3,085 per tonne. Weekly turnover increased to 154,253 lots from 122,929 lots previous week.

Open position stood at 280,011 contracts against 143,930 contracts recorded the previous Friday.

On the physical market, September South ended the week RM110 higher at RM3,010 per tonne. Bernama

Source : The Star