Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives are
likely to be firm next week on the back of rising overseas demand,
dealers said.
A dealer said strong demand for palm oil from India, China and the
Middle East will continue to support the market in the foreseeable
future.
“Concerns over external factors like the US soyoil production being
disrupted by unfavourable weather conditions has also buoyed the palm
oil market,” he added.
Meanwhile, Interband Group of Companies senior trader Jim Teh said
prices should remain in the comfortable range of RM3,200 to RM3,300,
which will attract physical buyers rather than see paper trade in the
market.
“Physical buyers should be given the priority as stock levels are still high,” he said.
On Wednesday, weak US job data, triggered a broad-based soft
commodities sell down with indications that the US manufacturing sector
may slow to its lowest since 2009.
In another development, the government launched the B5 fuel
containing five per cent biodiesel made from palm oil in Putrajaya, and
is planning to expand distribution in the future.
The Malaysian Palm Oil Board (MPOB) is expected to release its May
palm oil stock levels data on June 10, with market talk indicating it
would increase to the range of between 1.7 million to 1.8 million tonnes
from the 1.67 million tonnes reported in April.
On a weekly basis, June 2011 ended RM66 lower at RM3,478 per tonne,
July 2011 lost RM42 to RM3,448 per tonne, August 2011 dropped RM17 to
RM3,421 while September 2011 gained RM4 to RM3,412.
Turnover was lower at 110,021 lots compared to the 110,484 lots last
week, while the open position rose to 109,727 contracts from 106,927
contracts previously.
On the physical market, June South ended the week at RM3,480 per tonne. — Bernama
