05/12/2011 (The Star) - Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to see an uptrend this week, boosted by low production and increasing demand, dealers said.

A dealer said the ongoing tight supply situation would continue to overcome concerns over the European financial crisis.

“Demand is anticipated to gain momentum ahead of the Chinese New Year festive in January,” he said, adding that the market was keenly awaiting the release of production and exports figures by the Malaysian Palm Oil Board on Dec 10.

Meanwhile, Interband Group of Companies senior palm oil trader Jim Teh anticipated prices to trend between RM2,800 and RM3,000 per tonne this week.

For the week just-ended, December 2011 lost RM30 to RM3,040, January 2012 slipped RM1 to RM3,066, February 2012 dropped RM7 to RM3,062 while March 2012 lost RM5 to RM3,060 per tonne.

Volume for the week declined to 75,013 lots, from 157,681 lots, previously while open interest decreased to 124,536 contracts, from 128,622 contracts, recorded previous Friday.

November South fell RM30 to RM3,070 per tonne. Bernama