Monday June 18, 2012
CPO futures market seen to be cautious this week
KUALA LUMPUR: Crude palm oil (CPO) futures market is expected to remain cautious this week following uncertainties in the global market, dealers said.
A dealer said the outcome of the Greek poll would also influence the edible oil's price movement this week.
According to cargo surveyor Intertek Testing Services, Malaysian palm oil exports jumped 20 per cent to 716,322 tonnes for June 1-15 from a month ago.
However, palm oil stock levels remained supportive suggesting strong demand was decreasing stocks, he said.
Malaysian palm oil stocks hit a 13-month low in May.
“The local market is seeking a fresh direction following continuous profit-taking after starting the week strongly,” he said.
Throughout the week, the market was mixed weighed by eurozone developments against better demand.
The Malaysian CPO futures contract prices tumbled below the RM2,900 level per tonne last Thursday for the first time this year.
Compared to previous week, June 2012 declined RM115 to RM2,810 per tonne, July 2012 fell RM132 to RM2,841 per tonne, August 2012 lost RM125 to RM2,848 per tonne and Sept 2012 dropped RM121 to RM2,849 per tonne.
The weekly turnover rose to 140,013 lots from 129,233 lots previously, while open interest was lower at 97,885 contracts against 98,671 contracts previously.
On the physical market, June South ended the week traded between RM2,870 and RM2,930 per tonne compared with RM2,990 per tonne previously. Bernama