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Palm oil futures to extend gains
by hlk Mon 09 Jan 2012, 02:13
Crude palm oil futures contracts are likely to trade higher next week in
anticipation of a favourable data from the Malaysian Palm Oil Board
(MPOB) which is due next week, a dealer said.
She expects the futures contracts to extend the gains recorded on Friday.
Meanwhile Jim Teh, a senior trader with Interband Group of Companies
expects the futures contracts to be traded between RM3,100 and RM3,150
per tonne.
Teh said the market had staged a bullish performance
during the week just ended, breaching the RM3,200-mark, surpassing his
expectations.
"The market began the year with an excellent
performance. The futures contracts are likely to be traded within the
range of RM3,100 and RM3,150 per tonne," he said.
"Investors would not enter the market if the prices are too high," Teh added.
Chris Oh, Head of Research/Strategist at UBS Investment Research
expects the CPO prices to recover this year on the back of higher demand
from China, India and Indonesia.
Oh said another factor that
would boost CPO prices was the tightening oilseed supply in 2012 as a
result of slow plantings in the United States and weather risk.
OCBC Bank in its Commodities Outlook for 2012 said the weather would
remain the biggest wildcard in determining palm oil supply in Indonesia
and Malaysia for this year.
"The current La Nina episode is estimated to last till early 2012 and may continue to affect harvesting efforts," OCBC said.
The bank expects a production recovery in 2012 based on two reasons
with one being that the 2012's La Nina episode will be less severe and
another that production tended to rebound in double digit percentage
point after the monsoon.
Heavy rains tend to spur pollination in oil palm trees, it explained.
For the week just ended, January 2012 added RM23 to RM3,198 a tonne,
February 2012 added RM41 to RM3,216, March 2012 rose RM36 to RM3,211 a
tonne and April 2012 increased RM33 to RM3,203 a tonne.
Turnover for the week increased to 74,677 lots from 68,391 lots recorded the previous week.
Open position rose to 114,558 contracts on Friday from 113,036 contracts the previous Friday.--Bernama
anticipation of a favourable data from the Malaysian Palm Oil Board
(MPOB) which is due next week, a dealer said.
She expects the futures contracts to extend the gains recorded on Friday.
Meanwhile Jim Teh, a senior trader with Interband Group of Companies
expects the futures contracts to be traded between RM3,100 and RM3,150
per tonne.
Teh said the market had staged a bullish performance
during the week just ended, breaching the RM3,200-mark, surpassing his
expectations.
"The market began the year with an excellent
performance. The futures contracts are likely to be traded within the
range of RM3,100 and RM3,150 per tonne," he said.
"Investors would not enter the market if the prices are too high," Teh added.
Chris Oh, Head of Research/Strategist at UBS Investment Research
expects the CPO prices to recover this year on the back of higher demand
from China, India and Indonesia.
Oh said another factor that
would boost CPO prices was the tightening oilseed supply in 2012 as a
result of slow plantings in the United States and weather risk.
OCBC Bank in its Commodities Outlook for 2012 said the weather would
remain the biggest wildcard in determining palm oil supply in Indonesia
and Malaysia for this year.
"The current La Nina episode is estimated to last till early 2012 and may continue to affect harvesting efforts," OCBC said.
The bank expects a production recovery in 2012 based on two reasons
with one being that the 2012's La Nina episode will be less severe and
another that production tended to rebound in double digit percentage
point after the monsoon.
Heavy rains tend to spur pollination in oil palm trees, it explained.
For the week just ended, January 2012 added RM23 to RM3,198 a tonne,
February 2012 added RM41 to RM3,216, March 2012 rose RM36 to RM3,211 a
tonne and April 2012 increased RM33 to RM3,203 a tonne.
Turnover for the week increased to 74,677 lots from 68,391 lots recorded the previous week.
Open position rose to 114,558 contracts on Friday from 113,036 contracts the previous Friday.--Bernama
hlk- Moderator
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Re: Palm oil futures to extend gains
by toby08lim Mon 09 Jan 2012, 08:59
Nice.... But rally may affect today market movement...
toby08lim- New Member
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Join date : 2011-12-15
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