CPO futures expected to uptrend this week

Crude palm oil (CPO) futures on the Bursa Malaysia Derivatives are expected to be on uptrend this week amid bullish sentiments, dealers said.

A dealer said industry players and analysts were generally bullish about the market with improved sentiments.

Prices will remain fundamentally supportive amid concerns over supplies shortage.

Support levels will be at RM3,450 while there will be some resistance at RM3,600, he said.

Meanwhile, cargo surveyor Societe Generale de Surveillance said on Tuesday, exports of Malaysian palm oil products for November rose by 19.2% to 1.569 million tonnes from 1.316 million tonnes shipped during October.

CPO futures had rallied for five consecutive days previous week over improved sentiments and supply concerns.

On a Friday-to-Friday basis, December 2010 contract rose RM200 to RM3,560 per tonne, January 2011 contract surged RM256 to RM3,562 per tonne, February 2011 climbed RM242 to RM3,516 per tonne, and March 2011 increased RM232 to RM3,475 per tonne.

Volume for the week retreated to 97,458 lots from 99,615 lots previously, while the open position declined to 77,910 contracts on Friday from 79,077 contracts previously. As for the physical market, the CPO for December shipment was traded higher at RM3,560 per tonne on Friday versus the RM3,360 per tonne previously. Bernama