Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives are expected to hover between RM2,200 and RM2,300 per tonne next week, says Interband Group Senior Palm Oil Trader, Jim Teh.

Predicting a bearish market sentiment next week, he said traders were cautious of the high stock inventory which is close to 2.6 million tonnes by the end of November.

"At the price range of RM2,200 to RM2,300, it is hoped that more buyers and sellers will come out to participate in the market as both parties can still make a profit," he said today.

"It's a win-win situation...plus the planters can also benefit from this".

He said the CPO prices would rise again when the inventory dropped to two million tonnes, which would take about half a year of 2013.

"Maybe by June next year, the CPO prices will be around RM2,500 to RM2,600," he added.

On a Friday-to-Friday basis, benchmark month December 2012 decreased by RM93 to RM2,267 per tonne.

Spot month December 2012 slipped RM33 to RM2,267 per tonne, January 2013 declined RM18 to RM2,355 while February 2013 and March 2013 lost RM16 each to RM2,395 and RM2,430, respectively.

Weekly turnover fell to 114,447 lots from 198,929 lots last Friday while open interest increased to 178,543 contracts from 164,512 contracts last week.

On the physical market, November South rose RM30 to RM2,270 per tonne from RM2,250 per tonne last week. -- BERNAMA