KUALA LUMPUR, Feb 27 ― The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to see rangebound trading of between RM2,400 and RM2,500 per tonne next week.
Interband Group of Companies Senior Palm Oil Trader Jim Teh said the current CPO price level was at a satisfying level and had helped local plantation companies generate better income.
“If we look at the annual reports of several plantation companies, including Kuala Lumpur Kepong and IOI Corporation, they're making a good profit.
“Amid the challenges in the gloomy global economy, CPO producers are now surviving and the current situation is actually aiding them,” he added.
Asked about production, Teh said in Peninsular Malaysia, it had positive momentum, but in Sabah and Sarawak, was affected by the current dry weather.
For the week-just-ended, CPO was traded mixed.
On a weekly basis, March 2016 shed RM60 to RM2,462, April 2016 fell RM48 to RM2,518, May 2016 decreased RM43 to RM2,543 and June 2016 was RM40 lower at RM2,536 a tonne.
Turnover for the week just ended was higher at 249,225 lots from 228,579 lots last week, while open interest expanded to 263,917 contracts from 236,566 contracts.
On the physical market, March South slipped RM40 to RM2,480 a tonne from last week's RM2,520 a tonne. ― Bernama
