CPO FUTURES SET TO TRADE WITH BULLISH BIAS NEXT WEEK
KUALA LUMPUR, Dec 14 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to trade with a bullish bias next week, given weaker output and potentially lower stock levels for the month, a dealer said.
Palm oil trader David Ng told Bernama that he expects CPO prices to trade between RM4,800 per tonne and RM5,050 per tonne next week.
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, 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 decreased 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 fell by RM167 to RM4,816 per tonne, April 2025 declined 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, while open interest improved to 241,421 contracts from 234,629 contracts a week earlier.
The physical CPO price for December South was down by RM180 to RM5,200 per tonne.
-- BERNAMA
