Crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives are expected to be lower next week in line with the anticipated weaker performance of other commodity markets overseas.

Dealers said trading would be cautious on concerns over the weaker demand following a gloomy global economic outlook.

Throughout the week, the CPO futures market moved on a lower note in line with the weaker performances of commodities globally.

The market reacted negatively to the outcome of the US Federal Meeting on Wednesday which is said to have failed to boost the world’s richest economy.

On a weekly basis, October 2011 slipped RM94 to RM3,005 per tonne, November 2011 eased RM89 to RM2,989 a tonne, December 2012 fell RM78 to RM2,992 and January 2012 shed RM75 to RM2,995.

Turnover for the week rose to 98,376 lots against 91,385 lots previously while open interest decreased to 135,326 contracts from 141,333 contracts recorded last Thursday.

The market was closed last Friday for the Hari Malaysia celebration. On the physical market, September South fell RM110 to RM3,010 per tonne.– Bernama

Source: Business Times