KUALA LUMPUR: Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives are expected to see subdued trading with prices capped between RM2,200 and RM2,350 per tonne next week, dealers said.
Interband Group of Companies Senior Trader Jim Teh said there will be “yo-yo” trading next week and some speculative paper trading to support prices.
“The prices will likely get some support from traders who will start to stock up on the commodity ahead of a key industry meeting in Kuala Lumpur next week.
“At the same time, they will also be cautious, waiting for the outcome of the three-day meeting scheduled to start on March 2, that might provide some cues for the CPO prices,” he told Bernama.
For the week just ended, the market was mostly higher after the China market reopened from a long Chinese New Year break.
On a week-to-week basis, March 2015 rose RM19 to RM2,321 per tonne, April 2015 and May 2015 added RM5 each to RM2,308 and RM2,305 per tonne respectively, while June 2015 gained RM8 to RM2,294 per tonne.
Weekly turnover jumped to 230,307 lots from 80,110 lots last week while open interest increased to 240,195 contracts from 214,770 contracts.
On the physical market, March South advanced RM20 to RM2,320 per tonne. – BERNAMA