04/04/2011 (Business Times) - The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is likely to trade higher next week driven by external influences, dealers said.

They said the effect of the tighter soy and corn supply report, released by the United States Department of Agriculture (USDA) on Thursday, will continue into next week.

Meanwhile, Jim Teh, Senior Trader, Interband Group of Companies said the CPO prices are expected to trade between RM3,000 and RM3,200 per tonne next week.

"The current price is a bit high," he told Bernama, adding, buyers are staying on the sidelines because of this. 

 He said the expected price was more reasonable as it would encourage buyers to come to the market.

On a Friday-to-Friday basis, April 2011 went up RM73 to RM3,393 per tonne, May 2011 gained RM72 to RM3,360 per tonne, June 2011 improved RM79 to RM3,340 per tonne and July 2011 was up RM81 to RM3,333 per tonne.

The weekly turnover fell to 107,821 lots from 148,836 lots previously, while open interests slipped to 92,346 contracts from 92,541 contracts last week.

On the physical market, April South ended RM60 higher at RM3,410 per tonne.