Crude
palm oil (CPO) futures on Bursa Malaysia Derivatives may breach the
RM3,000-level next week on weakening US dollar and prospects of a
shortfall in supply, dealers said.
Interband Group of Companies Senior Palm Oil Trader Jim Teh said
there could also be speculative buying that would push prices higher.
“However, the market which has been on an uptrend since the second
half of the year, is expected to undergo a correction next year,” he
said.
Malaysia’s palm oil exports during the Oct 1-15 period fell four
per cent from the same period last month to 606,243 tonnes, according to
cargo surveyor SGS Malaysia Bhd.
During the week, CPO futures surged to a near 26-month high in line
with advances in the soybean futures market and a smaller global crop
estimate for soy and corn by the US Department of Agriculture due to bad
weather.
On Friday, prices moved close to RM3,000, driven by the weakening of the US dollar and supply concerns.
On a Friday-to-Friday basis, October 2010 gained RM141 to RM2,890
per tonne, November 2010 rose RM146 to RM2,930 per tonne, December 2010
surged RM170 to RM2,760 per tonne and Jan 2011 increased RM182 to
RM2,754 per tonne.
Turnover increased to 106,400 lots from 73,363 lots last week while
open interest was lower at 68,320 contracts from 71,632 contracts.
On the physical market, October South was traded between RM2,920 and RM2,950 from RM2,780 per tonne. — Bernama
Source : Business Times
