CPO futures seen range-bound next week

Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives are expected to be range-bound next week with sentiment cautious amid concerns that the global economy could be slipping into recession with the economic problems in US and Europe.

Jim Teh, senior palm oil trader of Interband Group of Companies, said there was a possibility that the prices could go down to RM2,900 to RM3,000 per tonne.

"However, at these prices there is still profit as cost amounts to about RM1,200 to RM1,500 per tonne," he told Bernama here today.

For the week just-ended, the market was on upward trend as traders covered their positions due to the shorter trading days.

On Friday, the market ended on a high note supported by gains in other vegetable oils.

The market was closed for Hari Raya and Merdeka Day celebrations from Tuesday to Thursday. On a Friday-to-Friday basis, September 2011 increased RM85 to RM3,185 per tonne, October 2011 gained RM93 to RM3,109, November 2011 advanced RM75 to RM3,050 and December 2011 increased RM76 to RM3,043.

Turnover fell to 15,773 lots from 98,096 lots last week while open interests were higher at 128,216 contracts from 127,529 contracts last Friday.

On the physical market, September South was higher at RM3,200 per tonne from RM3,110 last Friday. -- Bernama