CPO to trade between RM2,300 and RM2,400
Trading in crude palm oil (CPO) futures contracts is expected to be uncertain with the possibility of an uptrend next week with prices trending between RM2,300 and RM2,400 per tonne.
However, the undertone of the market remains bullish and stands to gain further following the government's announcement to allocate RM243 million for the replanting of rubber, oil palm and cocoa as well as forest plantations in the 2014 Budget.
Prime Minister and Finance Minister Datuk Seri Najib Razak presented next year's budget in Parliament on Friday.
Interband Group of Companies senior trader Jim Teh said Budget 2014 is favourable to the commodities market and there would be more palm oil trees in the next three years when replanting is implemented.
"Production of oil palm will be more and this would help the nation's inventory," he told Bernama, adding that the price range next week will delight Malaysian planters.
On a Friday-to-Friday basis, spot month November 2013 increased RM66 to RM2,458 a tonne, December 2013 rose RM46 to RM2,445, January 2014 gained RM43 to RM2,444 and February 2014 added RM43 to RM2,446 a tonne.
Weekly turnover advanced to 30,546 lots from 28,174 lots previously, while open interest decreased to 178,072 contracts from 184,141 contracts previously.
On the physical market, November South was traded RM50 higher at RM2,450 per tonne.-- Bernama