CPO futures likely to trade RM2,500-RM2,700

Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is likely to trade higher next week with trading
dominated by speculative play.

The edible oil is anticipated to trend between RM2,500 and RM2,700 per tonne as this is expected to delight planters.

Interband Group senior palm oil trader Jim Teh said the attractive prices were expected despite the high cpo stock situation in Malaysia and Indonesia.

On a Friday-to-Friday basis, December 2013 increased RM30 to RM2,615 a tonne, January 2014 rose RM36 to RM2,650 a tonne, February 2014 gained RM41 to RM2,654 a tonne and March 2014 added RM42 to RM2,656 a tonne.

Weekly turnover decreased to 137,667 lots, from 194,716 lots recorded last week while open interest declined to 182,758 contracts from 191,226 contracts previously.

On the physical market, December South was RM10 lower at RM2,640 per tonne.