10/09/2012 (The Star) - Crude palm oil (CPO) futures are expected to be cautious this week in the absence of market-moving factors, dealers said.

A dealer said demand from overseas was weak due to the economic problems in Europe and the slowdown in China.

Interband Group of Companies' senior palm oil trader, Jim Teh, said for this week the futures price would trade between RM2,700 and RM2,800 per tonne.

“The market is expected to see more physical buying.”

“That could help reduce the stocks, currently at almost two million tonnes,” he told Bernama last Friday.

However, he said, compared to the rubber price which kept going down for six consecutive months, the CPO market price was still strong.

Teh added the palm oil stocks in Malaysia currently stood between 1.8 million and 1.9 million tonnes.

For the week just-ended, September 2012 and October 2012 fell RM31 to RM2,809 per tonne and RM2,865 per tonne, respectively.

November 2012 declined RM21 to RMRM2,927 and December 2012 eased RM25 to RM2,964 per tonne.

Weekly turnover increased to 196,596 lots from 135,727 lots previously.

Open position stood at 152,834 contracts against 169,237 contracts previously.

On the physical market, September South ended the week RM40 lower at RM2,800 per tonne. Bernama