MARKET DEVELOPMENT
CPO Futures Likely To Trade Between RM2,770 And RM2,870 Next Week
CPO Futures Likely To Trade Between RM2,770 And RM2,870 Next Week
03/03/2014 (Bernama) - The Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is likely to trade between RM2,770 and RM2,870 per tonne next week on expectation of lower inventories.
Phillip Futures Sdn Bhd Derivatives Product Specialist David Ng said next week's trade will be on an uptrend, but may face volatility in near term, ahead of a palm oil conference in Kuala Lumpur.
He said weather play is still imminent and any adverse conditions will spur further buying interest in view of lower production.
Meanwhile,Interband Group of Companies Senior Palm Oil Trader Jim Teh told Bernama there would be profit taking activities next week, ahead of the palm oil conference from March 3-5.
"Most international traders will be here and the market may be inactive with them sidelined," he added.
On a Friday-to-Friday basis, March 2014 increased RM49 to RM2,825 a tonne, April 2014 gained RM28 to RM2,805 a tonne, May 2014 rose RM45 to RM2,800 a tonne, June 2014 and July 2014 each improved RM50 to RM2,782 a tonne and RM2,756 a tonne respectively, while August 2014 was RM48 higher at RM2,734 a tonne.
Weekly turnover increased to 214,190 lots from the 212,377 lots last week, while open interest decreased to 218,804 contracts from 242,082 contracts, recorded previously.
On the physical market, March South ended RM30 higher at RM2,830 per tonne.
Phillip Futures Sdn Bhd Derivatives Product Specialist David Ng said next week's trade will be on an uptrend, but may face volatility in near term, ahead of a palm oil conference in Kuala Lumpur.
He said weather play is still imminent and any adverse conditions will spur further buying interest in view of lower production.
Meanwhile,Interband Group of Companies Senior Palm Oil Trader Jim Teh told Bernama there would be profit taking activities next week, ahead of the palm oil conference from March 3-5.
"Most international traders will be here and the market may be inactive with them sidelined," he added.
On a Friday-to-Friday basis, March 2014 increased RM49 to RM2,825 a tonne, April 2014 gained RM28 to RM2,805 a tonne, May 2014 rose RM45 to RM2,800 a tonne, June 2014 and July 2014 each improved RM50 to RM2,782 a tonne and RM2,756 a tonne respectively, while August 2014 was RM48 higher at RM2,734 a tonne.
Weekly turnover increased to 214,190 lots from the 212,377 lots last week, while open interest decreased to 218,804 contracts from 242,082 contracts, recorded previously.
On the physical market, March South ended RM30 higher at RM2,830 per tonne.