Published: Monday August 20, 2012 MYT 8:25:00 AM
Updated: Monday August 20, 2012 MYT 9:24:44 AM
Palm oil market expected to be quiet this week
KUALA LUMPUR: Crude palm oil (CPO) futures market is expected to be quiet this week but prices will be dictated by exports and encouraging economic outlook.
The benchmark month of November may attempt to push above the RM3,000 per tonne level on speculative activities with some market participants optimistic about demand picking up during the holiday-shortened week, a dealer said.
The market will be closed on Monday and Tuesday for the Hari Raya Aidilfitri celebration, nevertheless, the benchmark November contract may attempt to push above the RM3,000 per tonne level if sentiment continues to be positive.
However, another dealer said market activity was mainly speculative and physical trading was minimal.
"There are a lot of speculative play, paper trading and not much actual physical activities, said Interband Group of Companies' Senior Palm Oil Trader Jim Teh told Bernama.
He said buyers still considered prices to be on the high side.
"If prices come down to between RM2,700 and RM2,800 per tonne there would be more physical buying which would help reduce stocks," he said, adding that palm oil stocks in Malaysia currently stood between 1.8 million and 1.9 million tonnes.
For the week-ended last Friday, prices were steady to higher as futures market participants reacted positively to more shipments to China and India.
Compared with the previous week, September 2012 increased RM68 to RM2,898 per tonne, October 2012 rose RM85 to RM2,928, November 2012 climbed RM80 to RM2,962 and December 2012 added RM76 to RM2,985 per tonne.
Weekly turnover increased to 122,929 lots from 119,681 lots last week.
Open position on Friday stood at 143,930 contracts versus 142,561 contracts recorded the previous Friday.
On the physical market, September South ended the week RM150 higher at RM2,900 per tonne. - BERNAMA