18/02/2013 (The Star) - The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives, which closed bearish last week, is expected to rebound this week on renewed demand.

Interband Group Senior Palm Oil Trader Jim Teh said most traders were expected to return to the market this week after the long Chinese New Year holidays and spur demand for the edible oil.

Meanwhile, another dealer expected prices to remain uncertain this week after the Customs Department on Friday set its crude palm oil export tax for March at 4.5%, up from February's zero per cent. Malaysia exported its CPO tax-free for three months since December.

On a Friday-to-Friday basis, spot month February 2013 lost RM52 to RM2,428 a tonne, March 2013 erased RM82 to RM2,452 a tonne, April 2013 fell RM77 to RM2,483 a tonne and May 2013 shed RM73 to RM2,506 a tonne.

Weekly turnover declined to 67,870 lots from 138,181 lots last week while open interest rose to 198,224 contracts from 192,653 contracts previously.

On the physical market, February South was unchanged at RM2,440 per tonne. - Bernama