Malaysia's CPO Futures Expected To Be On Uptrend Next Week

By Azlee Nor Mahmud KUALA LUMPUR, Oct 15 (Bernama) -- Malaysia's crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives are expected to be on the uptrend next week despite bearish outlook as the El-Nino impact vanishes, a dealer said. Interband Group of Companies Senior Palm Oil Trader Jim Teh told Bernama that investors were in a state of joy as CPO prices was expected to linger between RM2,500 (US$594) and RM2,600 (US$618) a tonne next week. Speaking at the Malaysian Palm Oil Trade Fair and Seminar recently, CIMB Securities Regional Head of Plantations Ivy Ng predicted that the 'golden crop' would trade between RM2,400 and RM2,800 per tonne for the rest of the year, depending on how the ringgit fared. Meanwhile, UK-based LMC International Ltd chairman James Fry said the CPO prices would trade between US$675 (RM2,830) and US$700 (RM2,934) a tonne in the November-December period. The prices will then move up briefly in the January-February period next year on the back of falling Malaysian Palm Oil Board stocks due to seasonally lower monthly production, he added. He said the price would dip to US$600 (RM2,515) a tonne in the second half of 2017 with the Southeast Asian output and stocks surging as the El-Nino's impact vanished. The El-Nino, which brought prolonged droughts early this year, had affected oil palm yields. Fry's prediction was based on a Brent crude oil forecast of US$45 per barrel. On a Friday-to-Friday basis, spot month October 2016 fell RM125 to RM2,650 a tonne, November 2016 decreased RM110 to RM2,570 a tonne, December 2016 declined RM75 to RM2,561 a tonne and January 2017 went down RM52 to RM2,570 a tonne. Weekly turnover was lower at 239,268 lots from 243,203 lots last Friday, while open interest rose to 245,035 contracts from 243,029 contracts previously. On the physical market, October South rose RM10 to RM2,710 a tonne from the previous week. -- BERNAMA