21/02/2011 (The Star Online) - Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are expected to be traded around the RM3,600 to RM3,800 per tonne level this week as some investors might pull back investments in local commodities, dealers said last week.

As the European Union (EU) economy is recovering, fund managers who are mostly from there, are pulling out and reinvesting in it, the senior trader of Interband Group of Companies, Jim Teh told Bernama.

“This will affect our local prices.However, we are happy about this level, as the traded prices still exceed our expectations,” he said.

On a weekly basis, the February 2011 contract expired at RM3,820 per tonne while March 2011 declined RM215 to close at RM 3,755, April 2011 fell RM221 to RM3,734 and May 2011 shed RM223 to RM3,683.

Total turnover decreased to 113,112 lots from the 130,014 lots recorded previous week while open interests increased to 108,046 contracts from 98,830 contracts.

On the physical market, February South fell to RM3,770 per tonne from RM3,980 per tonne previously.