Saturday, March 13, 2010

CPO futures to rise on bullish outlook

Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are expected to be higher next week given the current bullish oulook for the commodity, dealers said.

They said market sentiment would also be supported by higher demand, stronger ringgit and encouraging export data expected to be released by cargo surveyors.

Experts told participants of the Palm and Lauric Oil Conference, held last week, that CPO prices were likely to trade between RM2,800 per and RM3,200 per tonne in the second-half of this year and first-half of 2011.

Malaysian Palm Oil Council chief executive officer Tan Sri Dr Yusof Basiron also shared a similar view when he predicted crude palm oil prices will likely breach the RM3,000 per tonne level towards the second-half of this year due to production shortfalls.

For the week just-ended, CPO futures recorded a weak performance on lack of demand and profit taking amid weaker soyoil futures prices.

On a Friday-to-Friday basis, March rose RM53 to RM2,729, April added RM32 to RM2,709, May gained RM15 to RM2,685 and June perked RM6 to RM2,670.

The total weekly turnover declined to 63,055 lots, from 71,163 lots last week, while open interest rose to 82,037 contracts, from 81,079 contracts, previously.

On the physical palm oil market, April South slipped RM10 to RM2,670 per tonne. -- Bernama

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