KUALA LUMPUR: The crude palm oil (CPO) futures market is expected to be bullish this week amid a gloomy global economic scenario.
“Although the condition is uncertain, the local market is expected to be range-bound, supported by speculative play,” said Interband Group of Companies senior palm oil trader, Jim Teh.
He said demand is expected to pick up as traders stock up ahead of the fasting month, adding that the lower stock position, will help push prices up.
“The CPO prices are expected to trade between RM2,700 and RM3,000 per tonne next (this) week,” he said.
For the week just-ended, futures prices were mixed as traders remained concerned over the uncertain global market situation.
On a Friday-to-Friday basis, July 2012 surged RM116 to RM2,926 per tonne from RM2,810 per tonne previously and August 2012 improved RM103 to RM2,944 per tonne from RM2,841 per tonne.
Meanwhile, September 2012 rose RM105 to RM2,953 per tonne from RM2,848 and October 2012 was RM109 higher at RM2,958 per tonne from RM2,849 per tonne previously.
The weekly turnover rose to 187,549 lots from 140,013 lots the previous week, while open interest was lower at 94,528 contracts against 97,885 contracts.
On the physical market, June South ended the week at RM2,970 per tonne compared with RM2,900 per tonne the previous Friday. Bernama
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