03/05/2011 (The Star) - Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are expected to remain bearish this week on concern over rising supply amid soft demand.

A dealer said most traders were hoping for better Malaysia's April palm oil export data after four months of continued decline.

Last Monday, cargo surveyor Societe Generale de Surveillance reported that palm oil exports for April 1-25 dropped 0.7% to 947,470 tonnes from 954,441 tonnes in the same period last month.

Another cargo surveyor, Intertek Testing Services, said exports for April 1-25 fell 7.7% to 865,593 tonnes from 937,591 tonnes.

Meanwhile, Interband Group of Companies senior palm oil trader Jim Teh said he expected CPO futures to be in rangebound trade this week, between RM3,000 and RM3,200 per tonne.

Last week, May 2011 fell RM35 to RM3,370 per tonne, June 2011 decreased RM86 to RM3,330 per tonne, July 2011 shed RM100 to RM3,270 per tonne.and August 2011 was lower by RM105 at RM3,256 per tonne.

The weekly turnover declined to 92,653 lots from 110,959 lots while open interest was slightly lower at 103,663 contracts from 107,100 contracts.

On the physical market, May South stood at RM3,380 per tonne.

The market will close on Monday for Labour Day holiday. - Bernama