Sluggish Exports To Weigh On CPO Futures Next Week

By Engku Shariful Azni Engku Ab Latif

KUALA LUMPUR, Feb 1 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to show a downside bias next week, amid sluggish export demand, according to palm oil dealer David Ng.

Ng noted weak demand for CPO exports, particularly from India, due to reduced competitiveness compared to rival vegetable oils. 

"We expect prices to range between RM4,100 and RM4,300 next week," he told Bernama.

Meanwhile, Interband Group of Companies' senior palm oil trader, Jim Teh, said the CPO futures market is likely to trade cautiously next week, with some local and international traders still absent due to the Chinese New Year holidays.

Teh forecasted prices to range from RM3,700 to RM3,900, with demand coming from India, Pakistan, the Middle East, the European Union, and the United States.

The CPO market was closed on Jan 29 and Jan 30 for the Chinese New Year public holidays.

On a Friday-to-Friday basis, the February 2025 spot-month contract rose RM64 to RM4,552 per tonne.

The March 2025 contract increased RM54 to RM4,4,404, while the April 2025 contract climbed RM73 to RM4,289.

Both the May 2025 and June contracts surged RM88 to RM4,198 and RM4,140 per tonne, respectively, while the July 2025 contract advanced RM76 to RM4,101.

Weekly trading volume fell to 162,072 lots, down from 383,178 lots the previous week, while open interest declined to 219,710 contracts from 222,762 contracts.

The physical CPO price for February South increased RM100 to RM4,650 per tonne.

-- BERNAMA