16/05/2011 (The Star) - Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to range between RM3,200 and RM3,400 per tonne this week as investors take a cautious outlook of the market, a dealer said.

“We are still bullish as prices are still supported by demand. May 2011 will expire next (this) week and June 2011 will become the new spot month,” she said, adding that the market may take direction from the export data scheduled to be released for first 15 days of May by cargo surveyors, Intertek Testing Services and Societe General de Surveillance.

“Exports of between 500,000 and 520,000 tonnes is anticipated for the May 1-15 period and this will be positive for prices if actual figures fall within market expectation,” the dealer added.

The market is closed tomorrow for the Wesak Day celebration.

Meanwhile, for the week just-ended, the market retreated initially from the broad-based overnight commodities sell-off but recovered as investors snapped up on bargains and encouraging April palm oil export figures released by the Malaysian Palm Oil Board.

Crude palm oil offtake rose to 1.332 million tonnes in April from 1.235 million tonnes recorded in March.

On a weekly basis, May 2011 rose RM35 to RM3,410 per tonne, June 2011 gained RM90 to RM3,365 per tonne, July 2011 added RM48 to RM3,274 per tonne and August 2011 firmed RM44 to RM3,249.

Turnover climbed to 125,813 lots, from 99,812 lots, previously, while open position stood at 112,707 contracts, on Friday, against 110,527 contracts recorded at the end of the previous week.

On the physical market, May South ended RM30 higher at RM3,380 per tonne.