KUALA LUMPUR: Crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives are likely to trade lower next week amid bearish market sentiment.
Interband Group of Companies senior palm oil trader Jim Teh said the market was expected to track other commodities particularly crude oil on concerns over weakening demand.
"High inventory levels in July and probably in August as well continued to suppress CPO prices," he told Bernama.
Teh also expected speculative play to continue to dominate the market next week with prices likely to trade between RM2,050 and RM2,200 a tonne.
Meanwhile, he said Malaysia could attract CPO physical buyers by reducing the export duty but still has to face competition from other countries.
According to the Malaysian Palm Oil Board's website on Friday, Malaysia has reduced the export duty on CPO for September to 4.5 per cent.
On a Friday-to-Friday basis, spot month August 2014 decreased RM125 to RM2,166 a tonne, September 2014 slid RM150 to RM2,107 a tonne, October 2014 lost RM140 to RM2,093 a tonne and November 2014 fell RM139 to RM2,091 a tonne.
Weekly turnover increased to 206,886 lots from 133,225 lots last week, while open interest decreased to 205,112 contracts from 266,354 contracts previously.
On the physical market, April South ended RM170 lower at RM2,140 per tonne.-- Bernama