Palm futures to trade at RM2,300-RM2,400
Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives are likely to move between RM2,300 and RM2,400 per tonne next week amid profit-taking, a trader said.
Interband Group Senior Palm Oil Trader Jim Teh said the price range is expected to attract more physical buyers to ease the country's high stock while still being profitable for planters.
"However, prices could increase when the general election fever comes on and there is speculation," he said, adding that market players would be in full swing next week as the Chap Goh Mei festival falls on Sunday, marking the end of the Chinese New Year celebration.
CPO prices kicked off the week on an uptrend due to better export numbers anticipated for the first half of February, coupled with the prospect of a tighter supply of its rival soybean oil.
Prices, however, started to ease Wednesday onwards as export data for the first 20 days of February pointed to slowing demand as well as weaker vegetable oil prices.
On a Friday-to-Friday basis, March 2013 increased RM27 to RM2,479 per tonne, April 2013 added RM23 to RM2,506 per tonne, May 2013 gained RM26 to RM2,532 per tonne and June 2013 stood at RM2,550 per tonne.
Weekly turnover advanced to 148,107 lots from 67,870 lots the previous week, while open interest decreased to 186,706 contracts from 198,224 contracts last Friday.
On the physical market, February South gained RM20 to RM2,460 per tonne from RM2,440 last week. -- BERNAMA