Malaysian CPO Futures To Trade Within Narrow Band On Profit Taking Actitivites

By Harizah Hanim Mohamed KUALA LUMPUR, Nov 12 (Bernama) -- Malaysian crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives is likely to be trade within a narrow band beginning Monday, prompted by profit taking activities following the sharp gains of last week. However, Interband Group of Companies Senior Palm Oil Trader Jim Teh said low inventories coupled with the weaker ringgit should boost sentiment for CPO futures prices which could range between RM2,700 and RM2,800 per tonne. The Malaysian Palm Oil Board reported that October's CPO production fell 2.17 per cent to 1.68 million tonnes but total palm oil exports dropped 1.39 per cent to 1.43 million tonnes. "The current price is extremely attractive to traders. "Planters are happpy too as the cheaper ringgit is drawing more foreign buyers, especially ahead of the Christmas celebration next month," he told Bernama. Teh also said even buyers from Europe, China and India have started stocking up on CPO supply since October. On a Friday-to-Friday basis, November 2016 soared RM223 to RM2,975 per tonne, December 2016 jumped RM235 to RM2,978, January 2017 was RM238 higher at RM2,974 and February 2017 added RM230 to RM2,961. Weekly turnover surged to 351,774 lots from 185,624 lots last week, while open interest widened to 274,920 contracts from 223,517 contracts previously. On the physical market, November South was RM240 better at RM3,050 per tonne. -- BERNAMA