trade higher next week as demand for the commodity is expected to spike
ahead of Ramadan, dealers said.
They said demand for cooking oil would increase during the fasting
month, which would start in the second week of August.
A dealer said given the low stock, this would help push the price
higher.
The Malaysian Palm Oil Board said yesterday, June stocks fell by
7.1 per cent to a 10-month low of 1.45 million tonnes from the previous
month while exports rose 1.44 million tonnes with demand coming from
India and China.
Societe Generale de Surveillance said palm oil exports for the first 15
days in July rose by 16.4 per cent to 708,384 tonnes and Interlek
Testing Service said exports during the same period jumped 11.3 per
cent to 668,573 tonnes.
OSK, in its research note earlier last week, said it would maintain
a conservative CPO price assumption at RM2,250 per tonne for 2010 and
2011.
“We suspect that should the current CPO price be sustained, we may
see a downward revision in average price assumption, which is between
RM2,400 and RM2,500,” it said.
August 2010 rose by RM149 to close the week at RM2,493 per tonne
compared with RM2,344 last Friday, September jumped RM170 to RM2,470
from RM2,300 previously and October increased by RM162 to RM2,449 from
RM2,287 last Friday.
Total turnover for the week rose to 96,347 lots from 70,931 lots
last week.
Open positions fell to 69,473 contracts from 72,569 previously.
For the physical market, July South rose by RM80 to RM2,510 from
RM2,430 per tonne from last Friday. — Bernama
