Crude palm oil (CPO) futures prices on Bursa Malaysia derivatives are expected to experience rangebound trading next week as players are expected to remain cautious over a weaker demand and rising inventory levels, dealers said.
They also said that Indonesia’s move to cut export tax for CPO in May to 17.5 per cent from 22.5 per cent this month could potentially attract demand away from Malaysia.
On Wednesday, cargo surveyor Intertek Testing Services reported that Malaysian palm oil exports for the April 1-20 fell 15 per cent to 612,342 tonnes from the 719,302 tonnes recorded in the same period last month.
Another cargo surveyor, Societe Generale de Surveillance said exports of Malaysian palm for April 1-20 declined 13 per cent to 638,666 tonnes from 734,897 tonnes recorded in the same period last month.
Both cargo surveyors are expected to release the export data for April 1-25 on Monday.
On a Friday-to-Friday basis, May 2011 rose RM116 to RM3,405 per tonne, June 2011 increased RM150 to RM3,386 per tonne, July 2011 gained RM137 to RM3,370 per tonne and August 2011 was higher by RM136 at RM3,361 per tonne.
Weekly turnover declined to 110,959 lots from 140,925 lots last week and open interest was slightly lower at 107,100 from 107,393 contracts previously.
On the physical market, May South stood at RM3,410 per tonne.–Bernama
Source: Business Times
