07/05/2012 (The Star) - The crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives are expected to trade lower this week amid quiet conditions and in the absence of positive factors.

Interband Group of Companies senior palm oil trader Jim Teh said lower prices would encourage buyers from India, Pakistan and China to enter the market.

“We want physical buyers to enter the market to help clear some of the inventory,” he told Bernama.

Teh said supply is expected to be abundant as the condusive hot weather and dry season, will encourage a better harvest, thus making prices more attractive for buyers.

He expects the CPO physical price to hover between the RM3,100 to RM3,200 levels this week.

Throughout the week just-ended, the market was traded lower with prices moving between RM3,358 per tonne and RM3,471 per tonne.

May 2012 fell RM121 to RM3,365 per tonne, June 2012 dropped RM143 to RM3,366 per tonne, July 2012 decreased RM147 to RM3,358 per tonne and August 2012 was down by RM148 to RM3,338 per tonne.

The week's turnover declined to 113,751 lots from 116,537 lots recorded for the previous week, while open interest was higher at 128,166 contracts, compared to the 123,053 contracts registered.

On the physical market, May South lost RM110 to 3,400 per tonne.