PIPOC2009-CPO

CHOPPY TRADE EXPECTED FOR CPO PRICES TILL YEAR END
By Wan Nor Azura Mior Abd Aziz

KUALA LUMPUR, Nov 10 (Bernama) -- The immediate term outlook for crude
palm oil prices remains bullish although a choppy trade is expected for the
commodity the rest of this year, says a market player.
Futures Broker Representative of CIMB Futures Sdn Bhd, Teoh Ghim Ming
expects CPO prices to range from RM2,150 to RM2,350 till end of the year.
"Crude palm oil market would trade and fluctuate more independently from
other commodities i.e. crude oil, metals or stock markets," Teoh said.
He said the three major factors likely to influence the price
direction of CPO futures would be the current choppy random-walk nature of crude
oil, buoyed by weakness in the dollar, and purchasing from China, India and
European countries.
Other factors could include the development of the crop in Brazil,
Argentina and Paraguay all which have experienced a drop.
"We do not know which factor will come into play. Obviously, one of
these factors will impact prices," he told Bernama after presenting his paper at
the ongoing International Palm Oil Congress 2009 (PIPOC 2009) here.
He presented a paper on "Understanding the Palm Oil Market Trend - What's
Next".
For the first quarter of next year, the objective will be to push and close
above the psychological resistance level at RM2,400 to RM2450 level.
"A success full rate above this technical hurdle will take the market into
the RM2,650 to RM2,700 zone in the fist quarter next year," Teoh said.--BERNAMA
WNA SD