MARKET DEVELOPMENT
CPO Futures to be Volatile Next Week
CPO Futures to be Volatile Next Week
11/01/2014 (The Star) - Cude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to be volatile next week on lack of direction.
Interband Group of Companies Senior Palm Oil Trader Jim Teh said the futures contract was likely to trade easier and confined between RM2,400 and RM2,500 per tonne next week.
He told Bernama that Malaysia's high inventories coupled with tapering demand especially from China, which had already stocked up enough supplies for the coming Lunar festival, was pressuring prices southwards.
The Malaysian Palm Oil Board reported higher end-December stocks at 1.99 million tonnes against 1.98 million tonnes registered in November.
Meanwhile, cargo surveyor, Intertek Testing Services, reported that palm oil exports dropped 21 per cent to 297,308 tonnes for the Jan 1-10 period.
For the week just-ended, the local market extended its losses as demand continued to weaken in the United States and China.
On a Friday-to-Friday basis, January 2014 fell RM119 to RM2,487 a tonne, February 2014 shed RM131 to RM2,499 a tonne, March 2014 slipped RM123 to RM2,517 a tonne and April 2014 decreased RM116 to RM2,528 a tonne.
Weekly turnover increased to 202,908 lots against 89,934 lots transacted last week while open interest rose to 190,932 contracts from 173,553 contracts last Friday.
January South ended the week RM10 lower at RM2,520 per tonne. - Bernama
Interband Group of Companies Senior Palm Oil Trader Jim Teh said the futures contract was likely to trade easier and confined between RM2,400 and RM2,500 per tonne next week.
He told Bernama that Malaysia's high inventories coupled with tapering demand especially from China, which had already stocked up enough supplies for the coming Lunar festival, was pressuring prices southwards.
The Malaysian Palm Oil Board reported higher end-December stocks at 1.99 million tonnes against 1.98 million tonnes registered in November.
Meanwhile, cargo surveyor, Intertek Testing Services, reported that palm oil exports dropped 21 per cent to 297,308 tonnes for the Jan 1-10 period.
For the week just-ended, the local market extended its losses as demand continued to weaken in the United States and China.
On a Friday-to-Friday basis, January 2014 fell RM119 to RM2,487 a tonne, February 2014 shed RM131 to RM2,499 a tonne, March 2014 slipped RM123 to RM2,517 a tonne and April 2014 decreased RM116 to RM2,528 a tonne.
Weekly turnover increased to 202,908 lots against 89,934 lots transacted last week while open interest rose to 190,932 contracts from 173,553 contracts last Friday.
January South ended the week RM10 lower at RM2,520 per tonne. - Bernama