Cpo futures on bursa malaysia derivatives to trade sideways next week

KUALA LUMPUR, Feb 16 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to trade sideways next week, on lack of market catalysts, a dealer said. Interband Group of Companies senior palm oil trader Jim Teh said the price was expected to move between RM2,100 and RM2,200 per tonne. "The market is expected to see some speculative plays and profit-taking as the current price of above RM2,000 level is considered high. "With the Malaysian inventories hovering around three million tonnes and Indonesia’s at 5.5 million tonnes and top buyer China is well stock up after the Chinese new year, the market needs a new catalyst for market direction," he told Bernama. However, he said the firmer crude oil price, with Brent Crude currently trading at above US$60 per barrel, would provide some support to the palm oil market. “Crude oil price often lends support to the palm oil markets as the commodity is used as an alternative source of energy,” he added. For the week just ended, the CPO futures prices were traded mostly lower, tracking the performance of soybean oil prices on the US Chicago Board of Trade except for Thursday prices which were higher on the back of slower production expectations and a weaker ringgit. On a Friday-to-Friday basis, February 2019 added RM10 to RM2,200 a tonne, March 2019 fell RM53 to RM2,202 a tonne, April 2019 decreased RM36 to RM2,254 a tonne, and May 2019 slipped RM35 to RM2,273 a tonne. Weekly turnover surged to 156,978 lots from 62,396 lots, while open interest increased to 227,047 contracts versus 208,815 contracts. On the physical market, February South was RM60 lower at RM2,130 a tonne from RM2,190 a tonne.  -- BERNAMA