Dull Overseas Demand May Keep CPO Prices Rangebound
Author: Admin | Filed under: Palm Oil Futures NewsBusiness Times
9 September, 2010
DULL demand from overseas and domestic buyers will keep crude palm oil futures prices on Bursa Malaysia Derivatives rangebound next week, a dealers said.
“It is difficult to judge the market movement next week because the holiday is too long and most traders have already stocked up their positions before the Muslim (Hari Raya) celebration,” he said.
The dealer said trading may be also tight as investors would look out for the data on the first ten days of palm oil exports in September and the monthly industry statistics to be released by the Malaysian Palm Oil Board.
A lacklustre performance was reported for August by surveyors.
It was reported that the Malaysian Palm Oil Board would release the data on September 15, instead of September 10 due to the Hari Raya holiday.
“This factor along with lack of leads on the domestic front will prompt players to cut their positions or restrain them from taking heavy positions,” the dealer said.
During the week, the market traded mostly higher as traders actively chased the physical market on expectations of lower production with plantation workers expected to take a long break to celebrate Hari Raya next week.
The market will be closed on Friday for Hari Raya. Trade will resume on Monday, September 13. On a weekly basis, September 2010 was up RM8 to RM2,695 a tonne, October 2010 rose RM20 to RM2,624 a tonne, November 2010 gained RM28 to RM2,570 and December 2010 added RM39 to RM2,564.
Weekly turnover, however decreased to 54,944 lots from 106,226 lots previously, while open position stood at 69,764 contracts from last Friday’s 68,853 contracts.
On the physical market, September South was unchanged from last week’s close of RM2,720. – Bernama
