Crude palm oil (CPO) futures on Bursa Malaysia Derivatives may test new highs next week as they move into the New Year, fuelled by renewed interests from traders and concerns over tight supplies, dealers said.
A dealer said although it would be tough to predict the direction of the prices next week, they definitely would be on the uptrend.
"We expect the uptrend for the first two weeks of January, which may potentially push prices pass the psychological RM4,000 resistance," he said.
He said the supporting level would be at RM3,700 with resistance at RM3,800 next week.
Another dealer said CPO price would increase further after profit-taking on Wednesday on the overall sentiments of the global grain market and supply concerns due to the local wet weather.
For the holiday-shortened week, CPO futures hit a 33-month high on Tuesday on the strength from other vegetable oils markets.
The feat was repeated on Thursday with the third month contract hitting a high of RM3,792.
The seven-day rally extended from last week was snapped on Wednesday when traders decided to take profits before year-end.
On a weekly basis, January 2011 rose RM84 to RM3,814 per tonne, February 2011 climbed RM124 to RM3,820, March 2011 gained RM123 to RM3,788 and April 2011 increased RM122 to RM3,768.
Volume for the week declined to 55,382 lots from 80,204 last week while open interest was lower at 87,737 contracts from 91,035 previously.
On the physical market, January shipment rose to RM3,820 per tonne from RM3,675 last Friday. -- Bernama