Crude palm oil (CPO) futures traded on Bursa Malaysia Derivatives are
expected to be higher next week, in tandem with the gains of other
commodities such as crude oil and soyoil, said a dealer.
A continued increase in crude oil prices would boost CPO prices as
it is used to produce bio-diesel, and demand for soya bean is also
surpassing supply, he said.
However, buyers will continue to be concerned over the rising US
dollar as the CPO is traded in the greenback.
Experts told participants of the recent Palm and Lauric Oil
Conference that CPO prices are likely to trade between RM2,800 per
tonne and RM3,200 per tonne in the second-half of this year and the
efirst-half of 2011.
For the week just-ended, the CPO futures settled weaker compared to
the preceding week, although a rebound on Friday reduced losses.
On a Friday-to-Friday basis, the April 2010 contract shed RM40 to
RM2,620, May 2010 slipped RM76 to RM2,583 and June 2010 declined RM66 to
RM2,577.
The total weekly turnover increased to 95,505 lots from 63,055 lots
last week, while open interests on Friday fell to 81,225 contracts from
the 82,037 contracts previously.
On the physical palm oil market, March South slipped RM40 to
RM2,630 per tonne. — Bernama
Source : Business Times
