01/02/2016 (Bernama) - Crude palm oil (CPO) futures contracts are likely to trade thinner next week on expectation of a further weakening in demand, a dealer said.

Interband Group Senior Palm Oil Trader Jim Teh said the local commodities market is expected to be quiet next week due to the upcoming Chinese New Year holiday.

He told Bernama that the price is expected to linger between RM2,300 and RM2,400 a tonne.

"Most buyers bought their supply last month. Next week, most of them would have started to go on holiday," he said.

However, Teh said the current CPO prices are still better compared to other commodities.

On a weekly basis, February 2016 declined RM33 to RM2,349 per tonne, March 2016 decreased RM24 to RM2,411 per tonne, and April 2016 fell RM17 to RM2,443 per tonne, while May 2016 ended RM22 lower at RM2,411.

Weekly turnover was weaker at 193,670 lots from 251,765 lots last week, while open interest narrowed to 237,337 contracts from 254,993 contracts previously.

On the physical market, newly introduced February South ended the week at RM2,370 per tonne.

The local market will be closed on Monday for the Federal Territory Day holiday.