Range-bound trade for CPO futures

Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are likely to witness range-bound trade next week amid concerns over slowing demand.

Kan Wai Hing, a broker with Kenanga Deutsche Futures Sdn Bhd, said prices were expected to move between RM3,120 and RM3,150 per tonne.

"Although the external market factors are strong, we still foresee lack of buying interest here.

"Traders are expected to return from the Chinese New Year holiday, however active participation is also unlikely," she said.

She said the market would unlikely be influenced by external factors.

Data by cargo surveyor Societe Generale de Surveillance (SGS) which saw a 19.9 per cent decline in Malaysian palm oil exports for Jan 1-25 to 947,401 tonnes from 1,182,707 tonnes during Dec 1-25, weighed on the local market sentiment.

Traders were also concerned that the wet weather could disrupt palm oil production and list prices.

The local CPO market was closed on Monday and Tuesday for the Chinese New Year holiday.

For the week just ended, the market was on a mixed trend due to lack of buying interest.

On a Friday-to-Friday basis, February 2012, March 2012 and May 2012 decreased RM26 each to RM3,137 per tonne, RM3,136 per tonne and RM3,126 per tonne respectively while April 2012 fell RM30 to RM3,135.

Turnover dropped to 40,181 lots from 132,532 lots last week while open interest on Friday amounted to 108,690 contracts from 111,279 contracts previously.

On the physical market, February South was lower at RM3,160 per tonne from RM3,165. -- Bernama