Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives are expected to hover between RM2,200 and RM2,250 per tonne this week on technical correction.
Interband Group senior palm oil trader, Jim Teh, told Bernama last week that the sluggish trend on other commodities will also weigh on CPO futures.
He said traders were wary ahead of the release of export data for the first 15 days of July this week, adding that the figures will improve slightly due to last-minute buying for the holy month of Ramadhan.
Malaysian Palm Oil Board data showed Malaysia’s June inventories fell to 1.65 million tonnes, exports rose to 1.41 million tonnes and production increased to 1.42 million tonnes.
On a Friday-to-Friday basis, July 2013 slipped RM40 to RM2,330 per tonne, August 2013 erased RM67 to RM2,309, September 2013 eased RM84 to RM2,301 and October 2013 dipped RM86 RM2,293.
Weekly turnover increased to 173,721 lots from 157,063 previous week and open interest rose to 226,995 contracts from 213,253 contracts previous Friday.
On the physical market, June South rose RM50 to RM2,350 a tonne.