02/07/2012 (The Star) - The crude palm oil (CPO) futures contract is expected to remain rangebound this week amid uncertainties in Europe despite the favourable weather in the United States, dealers said.

Interband Group of Companies Senior Palm Oil trader Jim Teh said the situation in Europe weighed on palm oil prices but tight soybean oil supply, due to the bad weather in the US, provided support.

“CPO prices are expected to trade between RM2,800 and RM3,000 per tonne next week,” he told Bernama, adding that market fundamentals were still intact.

For the week ended, futures were mostly up supported by higher demand as bad weather disrupted soybean oil production in the United States.

On a Friday-to-Friday basis, July 2012 rose RM66 to RM2,992 per tonne, August 2012 increased RM56 to RM3,000 per, September 2012 improved RM67 to RM3,020 per tonne and October 2012 advanced RM73 to RM3,031 per tonne.

Weekly turnover declined to 108,484 lots while open interest was higher at 94,587 contracts.

On the physical market, June South ended the week RM40 higher at RM3,010 per tonne.