KUALA LUMPUR: The crude palm oil (CPO) futures contract on the Bursa Malaysia Derivatives is expected to trade with a bullish bias this week, given weaker output and potentially lower stock levels for the month, a dealer says.
Palm oil trader David Ng told Bernama that he expects CPO prices to trade between RM4,800 and RM5,050 per tonne.
Meanwhile, Interband Group of Companies senior palm oil trader Jim Teh noted that CPO inventory levels are down due to the rainy season.
He said demand is typically driven by China in preparation for the Chinese New Year in January, as well as by India, Pakistan, the Middle Eastern countries and the United States.
“These countries will purchase CPO when there is a necessity to build up their inventory,” said Teh.
On a Friday-to-Friday basis, the spot-month December 2024 contract fell by RM196 to RM5,140 per tonne, January 2025 eased by RM248 to RM4,994, and February 2025 dipped by RM222 to RM4,906.
The March 2025 contract declined by RM167 to RM4,816 per tonne, April 2025 dropped by RM130 to RM4,689, and May 2025 was lower by RM100 to RM4,562.
Total weekly volume decreased to 405,635 lots from 441,315 lots in the preceding week. — Bernama
Source: The Star
