Crude Palm Oil (CPO) futures prices on Bursa Malaysia Derivatives are expected to be marginally lower next week as more clearance of the current high inventory takes place.
"The market will slow down next week as there will be more wash out of stocks which will continue the lower price trend," said Interband Group's Senior Palm Oil Trader, Jim Teh.
He said although there will be more investors returning after the Chinese New Year holiday, there will not be much buying as yet.
"The Chinese buyers will remain sidelined as they are expected to buy only when it is necessary," one dealer said.
The local market is also expected to take cue from soyoil prices, a dealer said.
The price of CPO futures is therefore expected to hover between RM2,400 and RM2,500 per tonne next week, the dealer said.
The market was closed on Friday for the Maulidur Rasul (Prophet Muhammad's birthday) celebration.
On a week-to-week basis, March 2010 dropped RM15 to RM2,595 per tonne, April 2010 edged down RM9 to RM2,590 per tonne, May 2010 slipped RM1 to RM2,595 per tonne and June 2010 decreased RM11 to RM2,579 per tonne.
The weekly turnover increased to 56,619 lots from 39,053 lots last Friday while open interest increased to 82,981 contracts from 80,465 previously.
On the physical market, March South decreased to RM2,605 per tonne from RM2,610 per tonne a week ago.-- Bernama