Palm futures may trade in narrow range

Crude palm oil futures prices on Bursa Malaysia Derivatives are expected to trade within a narrow range next week amid the uncertainty in the global economy, dealers said.

"The market could move sideways amid concerns over an impending United States debt crisis while the deepening debt problems in the euro zone would further weigh on the market, a dealer said.

Sentiment in commodity markets, including crude palm oil, is anticipated to remain cautious ahead of the August 2 deadline for the US borrowing limit.

Another dealer said market players were also awaiting the release of July's export data, due on Monday, for fresh leads, adding that the export figures could look healthy.

"CPO prices should hover around RM3,000 per tonne as exports are still good while on the other hand, concerns over high palm oil stocks will keep prices on the soft side," he added.

On a weekly basis, August 2011 declined RM28 to RM3,110 per tonne, September 2011 and October 2011 fell RM44 each to RM3,097 and RM3,096, respectively, while November 2011 dropped RM46 to RM3,093.

Turnover jumped to 99,327 lots, from 20,235 lots, last Friday while open position narrowed to 131,253 contracts, from 135,015 contracts, previously.

On the physical market, the August South eased RM20 to RM3,140 per tonne on Friday. -- Bernama