04/02/2013 (The Star) - The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives, which closed on a high note last week, may retreat this week.

Interband Group Senior Palm Oil Trader Jim Teh said there would be profit taking activities after the week saw prices soaring to their highest level so far this year.

The overall tone remained positive especially with the general election fever boosting market sentiment and external factors such as Indonesia raising export tax for palm oil and expectations of dry weather in the US which may affect soy crops. Futures prices on Bursa Malaysia Derivatives was expected to hover between RM2,200 and RM2,300 per tonne next week.

On a Friday-to-Friday basis, spot month February 2013 soared RM129 to RM2,512 a tonne, March 2013 rose RM115 to RM2,528 a tonne, April 2013 added RM112 to RM2,557 a tonne and May 2013 rose RM102 to RM2,576 a tonne.

The market was closed last Monday for Thaipusam and on Friday for Federal Territory Day.

Weekly turnover fell to 99,735 lots from 146,967 lots previous week while open interest appreciated to 213,363 contracts from 210,074 contracts previously.

The physical market, February South rose RM120 to RM2,460 per tonne. Bernama