05/01/2013 (Business Times) - Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives are expected to hover between RM2,000 and RM2,300 per tonne next week on cautious trading, a trader said.

Interband Group Senior Palm Oil Trader Jim Teh said traders were cautious of the high stock inventory of 2.56 million tonnes in November and it is likely to be higher at over 2.58 million tonnes in December due to lower exports.

"Market players were anxiously awaiting the release of December production figures, early next week, by the Malaysian Palm Oil Board," he said.

On the government's new export tax structure, set at zero per cent, he said the measure has not shown any impact yet and it would probably take about three months to see any results.

The revised CPO export tax, which has made Malaysia's cargoes cheaper than top producer Indonesia, was hoped to spur demand for the golden crop.

For the week just-ended, CPO prices were on a volatile trading throughout the week due to bearish export data, strong demand prospects from the region and profit taking.

On Jan 1, Bursa Malaysia and its subsidiaries were closed for the New Year holiday.

On a Friday-to-Friday basis, January 2013 eased RM6 to RM2,369 per tonne, February 2013 fell RM28 to RM2,425 per tonne, March declined RM27 to RM2,467 per tonne and April slipped RM36 to RM2,504 per tonne.

The weekly turnover rose to 145,262 lots from 105,600 lots, while open interest increased to 193,511 contracts from 192,473 contracts last Friday.

On the physical market, January South decreased to RM2,290 per tonne from RM2,300 per tonne last week.