Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives are expected to be rangebound between RM2,300 to RM2,400 per tonne next week as the market continues to be haunted by weak external factors.

Interband Group Senior Palm Oil Trader Jim Teh said investors would be cautious in the wake of the devastating Hurricane Sandy which affected trading of the commodities market in the US.

The New York Mercantile Exchange (NYMEX), a commodity futures exchange, was closed on Monday and Tuesday as Sandy stormed the US.

Teh said sentiment was also weighed by Indonesia's decision to reduce its export tax for crude palm oil from 13.5 per cent to nine per cent.

Market participants believe the move will make Malaysian CPO products relatively more expensive and less competitive.

"There are also concerns over high level of CPO stocks," he said.

It was reported that stocks of CPO could be at a record high of more than 2.48 million tonnes.

The Malaysian Palm Oil Board is expected to release the official figure for October stock levels on Nov 12.

However, at current CPO prices of RM2,300 to RM2,400 per tonne, planters can still make handsome profits, according to Teh.

During the week, CPO futures were mostly lower on concerns over the high level of stocks, Indonesia's decision to reduce its export tax and the effects of Sandy.

On a week-to-week basis, benchmark contract month November 2012 lost RM130 to RM2,370 per tonne, December 2012 slipped RM134 to RM2,427 per tonne, January 2013 decreased RM107 to RM2,496 per tonne and February 2013 declined RM99 to RM2,541 per tonne.

Turnover increased to 159,935 lots from 127,826 lots last week while open interest decreased to 159,286 contracts from 160,028 contracts last week.

On the physical market, November South decreased to RM2,380 per tonne from RM2,460 per tonne previously.