Crude palm oil (CPO) futures market is expected to experience technical correction next week following the uncertain price movement this week, dealers said.

Interband Group of Companies senior palm oil trader Jim Teh said the price was expected to hover between 2,600 and 2,650 with the anticipation of more physical buyers next week.

He said the demand was projected to increase next week, which would reduce the stock level from about 1.9 million tonnes currently.

"Besides physical buyers, the market pattern next week will also be influenced by paper trading," he told Bernama.

For the week just-ended, Teh said the market was weighed down by cautious trading as traders awaited the US Department of Agriculture's report and Malaysian Palm Oil Board's (MPOB) data released on Friday.

"The palm oil price was also affected by other commodity prices which declined throughout the week," he added.

Compared with last week, August 2012 dropped RM67 to RM2,830 per tonne, September 2012 fell RM64 to RM2,843, October 2012 lost RM36 to RM2,882 and November 2012 was RM26 lower at RM2,909 per tonne.

Weekly turnover fell to 119,681 lots from 124,383 lots last week while open interest was higher at 142,561 contracts against 126,332 contracts previously.

On the physical market, August South decreased RM160 to RM2,750 per tonne from RM2,910 last Friday. -- BERNAMA