KUALA LUMPUR: Crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives are likely to trade at between RM2,250 and RM2,300 a tonne, said Interband Group of Companies senior palm oil trader Jim Teh.
He said the market would be in speculative play amid positive sentiment due to a higher biodiesel mandate from the Malaysian government and lower tax which will encourage exports.
The government will reportedly start implementing the use of B7 biodiesel in stages starting from November.
"This will boost the country's usage of palm oil thus reducing the inventory," he told Bernama.
On a Friday-to-Friday basis, November 2014 rose RM96 to RM2,309 per tonne, December 2014 jumped RM126 to RM2,309 per tonne while January 2015 and February 2015 both gained RM125 to RM2,306 per tonne and RM2,306 per tonne, respectively.
Weekly turnover increased to 263,134 lots from 165,592 lots last week, while open interest was reduced to 272,364 contracts from 284,530 contracts.
On the physical market, November South soared RM130 to RM2,320 per tonne from last week's October South at RM2,190 per tonne.-- Bernama