CPO prices expected to continue uptrend this weekAuthor: Admin | Filed under: Palm Oil Prices News
23 May, 2011
Crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives are expected to continue the uptrend this week driven by positive sentiments from the external market and export data.
Dealers said the uptrend would continue unless short-covering occurred.
A dealer said cargo surveyors, Intertek Testing Services and Societe General de Surveillance, were scheduled to release the export data for the period of May 1-25 on May 25.
The higher soyaoil prices due to the bad weather in the major producers country were also expected to support CPO prices.
However, Jim Teh, senior trader of Interband Group of Companies, said the current prices were too high for physical traders.
‚ÄúCPO prices need to be around RM3,200 to RM3,300 per tonne for physical traders to return to the market,‚ÄĚ he told Bernama.
He said there were plenty of stocks currently but the prices were too high. ‚ÄúThe prices need to go down in order to clears actual physical stocks,‚ÄĚ Teh said.
For the holiday-shortened week, June 2011 added RM112 to RM3,477 per tonne, July 2011 went up RM147 to RM3,422, August 2011 moved up RM141 to RM3,390 and Sept 2011 gained RM139 to RM3,379.
Turnover dipped to 94,638 lots from 125,813 lots, previously, while open interest slipped to 105,668 contracts against 112,707 contracts recorded on Friday previous week.
On the physical market, June South stood at RM3,460 per tonne.
The market was closed last Tuesday for Wesak Day.