CPO futures likely to trade RM2,500-RM2,600

Crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives are likely to trade between RM2,500 and RM2,600 per
tonne next week with mixed trading prompted by speculative play, says Interband Group senior palm oil trader Jim Teh.

Teh said the upcoming monsoon season may lend support to CPO prices on anticipation of tight supply and the CPO prices will also depend on external developments and sentiments.

He told Bernama that physical buyers are expected to withdraw from the market as the commodity would be unattractive to them at these price levels.

Technically, the market looks bullish and Malaysia's CPO prices are expected to rise.

On a Friday-to-Friday basis, December 2013 increased RM55 to RM2,640 a tonne, January 2014 rose RM28 to RM2,642 a tonne, February 2014 gained RM29 to RM2,642 a tonne and March 2014 added RM28 to RM2,642 a tonne.

Weekly turnover advanced to 194,716 lots, from 177,941 lots recorded last week, while open interest increased to 191,986 contracts from 178,628 contracts previously.

On the physical market, December South was RM50 higher at RM2,650 per tonne.