Firmer CPO futures mart expected

Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are expected to be firmer next week with the market anticipating the release of positive export figures, dealers said.

They said export figures from the two cargo surveyors, Societe Generale de Surveilance (SGS) and Intertek Testing Services (ITS), would be released next week.

"The prices will move in line with the prospect of good export figures," a dealer said.

The dealer also said the price would be pressured by the steady soyoil prices on the Chicago Board of Trade (CBOT) amid a continued buying mood.
"Market sentiment will be supported by higher demand ahead of the festive season especially from Muslim-majority countries," dealer added.
An analyst said the market is expected to see a strong support level of RM2,300 per tonne and a resistance level of RM2,400.
During the week, the Malaysian market was volatile, tracking the soyoil futures on the CBOT, as both are competing for the same export destinations.

November 2009 and December 2009 were the most active contracts throughout the week.

On a Friday-to-Friday basis, spot month September 2009 was up RM60 to RM2,440 per tonne, October 2009 added RM3 to RM2,381 per tonne, November 2009 increased RM25 to RM2,370 per tonne and December 2009 rose RM25 to RM2,360. The week's turnover stood at 76,153 lots, down from last week''s 117,199 lots, while the open position dropped to 84,990 contracts on Friday from 85,985 at the end of last week.

On the physical market, April South was traded higher at RM2,460 per tonne on Friday compared to RM2,400 per tonne, previously