MPOB Palmnews
 
Date
 12/11/2001
News Provider
 Mahamad Rodzi Abdul Ghani
News Source
 NULL
Headline
 CPO Futures To Trend Upwards Next Week

KUALA LUMPUR, Nov 10 (Bernama) -- The crude palm oil (cpo) futurescontracts on the Malaysia Derivatives Exchange could trend firmer nextweek as the market continued to react positively to a host ofmarket-friendly factors.

The market was encouranged by the government's decision to allow a quotaof 1.3 million tonnes of crude palm oil (CPO) for duty-free export nextyear and that prompted them to provide some support, said a trader.

Primary Industries Minister Datuk Seri Dr Lim Keng Yaik announced onFriday that the government had set a new quota of 1.3 million tonnes forthe tax-free export of CPO next year.

This was an increase compared with this year's quota of one milliontonnes.

The trader also said that the market could strengthen on better demand.

Dealers said that the market was also expecting seasonal demand from theupcoming festive seasons, in addition to better palm oil shipments toPakistan for the Afghan refugees aid programme.

However, another trader said the release of influential crop figures duenext week could cause players to trade cautiously.

On a Friday-to-Friday basis, November contract appreciated RM120 toRM1,090 per tonne compared with RM970, previously.

December contract strengthened RM99 to RM1,104 per tonne and January wasRM90 higher to RM1,120 per tonne.

A total of 14,549 lots were transacted this week, higher than last week's11,450 lots.

As for the cash market, Nov-South was RM100 stronger to settle RM1,080 atonne. -- BERNAMA