22/10/2012 (Bernama) - Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives are likely to move between RM2,300 and RM2,400 per tonne next week in cautious trading, dealers said.

Interband Group Senior Palm Oil Trader, Jim Teh, said buyers were also expected to adopt a wait-and-see attitude in view of the current high price range.

Teh, who anticipated a bearish market sentiment for next week, said the weaker price would continue to attract physical buyers, making demand for the commodity more stable and helping clear high inventory levels.

"We need physical buyers in the market as we forecast the inventories for this month to go as high as 2.6 million tonne despite the rainy season," he told Bernama.

Teh said weaker external factors would still influence the CPO futures prices.

On a Friday-to-Friday basis, benchmark month January 2013 decreased RM41 to RM2,501 per tonne.

Spot month November 2012 lost RM76 to RM2,404 per tonne, December 2012 fell RM25 to RM2,475 per tonne while February 2013 stood at RM2,540 per tonne.

Weekly turnover eased to 147,638 lots from 203,585 lots the previous week, while open interest decreased to 148,945 contracts from 186,164 contracts previously.

On the physical market, November South improved RM20 to RM2,420 per tonne from October South's RM2,400 per tonne last week.