Crude Palm Oil (CPO) futures on Bursa Malaysia Derivatives are expected
to remain rangebound next week due to the mixed sentiment in the market,
dealers said.
Some traders anticipate prices to receive a boost from lower
output in Malaysia and Indonesia as workers take a long break to
celebrate the Hari Raya holiday amid strong demand.
“Market sentiment will also receive continuous support from an uptrend in crude oil prices,” a dealer said.
However, the dealer said, CPO prices will move in tandem with the firmer soyoil prices on the Chicago Board of Trade.
The dealer added market players are also concerned over the
strengthening ringgit which will squeeze export margins and make the
import of palm oil products less attractive.
Bank Negara Malaysia is scheduled to have a Monetary Policy Committee Meeting on Thursday.
For the week just-ended, the market was higher amid talks of a new
price forecast made by industry analyst, Dorab Mistry, who projected the
local CPO price to increase about 20 per cent to RM3,000 in the second
half of 2010.
Cargo surveyor Intertek Testing Services estimated a drop of 7.6
per cent in the export of Malaysian palm oil products for the first 25
days of August at 992,319 tonnes compared with the 1,074,329 tonnes
shipped in the same period of
July.
Another cargo surveyor, Societe Generale de Surveillance
estimated that export of Malaysian palm oil products for the period,
fell 14.9 per cent to 939,456 tonnes.
On a weekly basis, September 2010 was down RM18 to RM2,688 per
tonne, October 2010 decreased RM4 to RM2,604 per tonne, November 2010
fell RM2 to RM2,542 per tonne and December 2010 eased RM6 to RM2,525.
Turnover decreased to 106,226 lots from 113,927 lots previously,
while open position stood at 68,853 contracts from 67,893 contracts
previously.
On the physical market, August South ended lower at RM2,720 per tonne versus the RM2,735 per tonne last week.
There was no trading in the crude palm kernel oil futures market throughout the week. — Bernama
