By Rosemarie Khoo Mohd Sani
KUALA LUMPUR, Aug 16 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to trade lower on a technical correction between the range of RM3,800 per tonne and RM3,950 per tonne, said Interband Group of Companies senior palm oil trader Jim Teh.
He said this is due to the fact that palm oil stocks for July 2025 rose to a 19-month high of 2.1 million tonnes, and futures prices increase due to speculative play by investors.
“As for physical demand, it will continue to come from China, Pakistan, Middle East and European Union countries.
“India is on cautious buying but likely not much from us as they are diversifying their purchases into other oils at the moment,” he added.
Another palm oil trader David Ng said the CPO market for next week is expected to trade with bearish bias given the recent price increase which may deter further buying of palm oil.
“We anticipate prices to trade between RM4,300 and RM4,450 per tonne,” said Ng.
Meanwhile, Palm Oil Analytics co-founder and senior analyst Sathia Varqa said market sentiment could be positive for the CPO market as buying momentum accelerated in the second session on Friday, fuelled by bullish export data for August.
He said cargo surveyor Intertek Testing Services (ITS) reported that exports for the first half of the month were up 16 per cent, while Amspec reported an increase of 21 per cent compared with the same period in July.
“Next week the market will be focused on Aug 1-20 production data,” he said.
On a weekly basis, the August contract rose RM124 to RM4,338 per tonne, September 2025 gained RM191 to RM4,425 per tonne, and October 2025 soared RM227 to RM4,427 per tonne.
The November 2025 contract advanced RM237 to RM4,511 per tonne, December 2025 was up RM244 to RM4,528 per tonne, while January 2026 climbed RM237 to RM4,526 per tonne.
The weekly trading volume increased to 472,033 lots from 354,336 lots last week, while open interest eased to 249,718 contracts from 311,976 contracts.
The physical CPO price for August South advanced RM150 to RM4,400 per tonne.
-- BERNAMA
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