CPO PRICES EXPECTED TO REMAIN BEARISH NEXT WEEK

KUALA LUMPUR, Nov 7 (Bernama) -- Crude palm oil (CPO) prices are expected to remain bearish next week.

The CPO market will closely await the release of production and export figures by the Malaysia Palm Oil Board (MPOB) next week, which will indicate the health of the industry.

With stocks piling up and if data to be released by the MPOB is also discouraging, it will drag prices even lower.

Overall, the market is not expected to move upward until and unless, the excess stock is mopped up.

For the-week-just-ended, the market remained bearish with players concerned over the lack of buyers and the build-up of the stock position.

On a Friday-to-Friday basis, the CPO futures for November 2009 contract rose RM9 to RM2,169 per tonne and December 2009 went up RM43 to RM2,215 per tonne. The January 2010 contract climbed RM38 to RM2,246 and February 2010 also rose RM51 to RM2,268 per tonne. The week's turnover declined to 9,137 lots compared with last week's 12,451 lots. The open position was also reduced to 93,667 contracts on Friday from the 95,266 contracts recorded at the end of last week. On the physical market, December South was traded slightly higher at RM2,210 per tonne compared to RM2,200 per tonne previously.

-- BERNAMA

STP AS