East Coast Floods, Low Stockpiles Seen Lifting CPO Futures Next Week

By Engku Shariful Azni Engku Ab Latif

KUALA LUMPUR, Nov 30 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to trade with an upside bias next week, given the worsening floods in the East Coast.

Palm oil dealer David Ng said low inventory levels of the commodity will also push up its price.

“We expect CPO futures to trade between RM4,900 and RM5,250 next week,” he told Bernama.

However, Interband Group of Companies senior palm oil trader Jim Teh sees the futures trading lower in the coming week due to profit-taking following recent rallies. “We expect the prices to range between RM4,500 and RM4,600 (per tonne) next week,” Teh said.

On a Friday-to-Friday basis, the new spot-month December 2024 contract jumped RM448 to RM5,238 per tonne, January 2025 climbed by RM411 to RM5,125 and February 2025 expanded by RM378 to RM5,020.

The March 2025 contract gained RM356 to RM4,903 per tonne, April 2025 rose RM314 to RM4,772 and the May 2025 contract bounced RM267 to RM4,640.

Total weekly volume dropped to 402,631 lots from 532,086 lots in the preceding week, while open interest fell to 227,559 contracts from 239,910 contracts a week earlier.

The physical CPO price for December South gained RM350 to RM5,300 per tonne.

-- BERNAMA