13/06/2011 (Business Times) - Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives are likely to be trading higher next week on expectation of stronger demand for the commodity, dealers said.

One dealer said the price outlook remained bullish as the upcoming festive period including Hari Raya and Deepavali celebrations are likely to increase demand.

"The fundamental is still high and the demand from India, China and the Middle East are anticipated to rise," he said.

He said the local CPO market would also closely track soyoil prices on the Chicago Board of Trade (CBoT) and Dalian Commodity Exchange.

Soyoil and palm oil compete for the same export destinations and their prices often move in tandem.

During the week just ended, the market traded lower in line with soyoil prices.

On a weekly basis, June 2011 declined RM230 to RM3,248 per tonne compared to last Friday's RM3,478 per tonne, July 2011 fell RM188 to RM3,260 per tonne from RM3,448 per tonne, August 2011 slipped RM182 to RM3,239 per tonne from RM3,421 per tonne and September 2011 decreased RM172 to RM3,240 per tonne from RM3,412 per tonne.

Turnover declined to 107,012 lots from 110,021 lots last week while open interest increased to 112,559 contracts from 109,727 contracts.

On the physical market, June South declined to RM3,270 per tonne from RM3,480 per tonne previously. -- Bernama