Bullish Bias Predicted For CPO Futures Next Week

By Fatin Umairah Abdul Hamid

KUALA LUMPUR, Jan 11 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to trade with a bullish bias next week, according to palm oil dealer David Ng. 

He said the outlook is supported by recent strength in the soybean oil market and continued positive fundamentals in the palm oil sector.  

“We expect prices to trade between RM4,300 and RM4,500 per tonne next week,” he told Bernama. 

Meanwhile, the Interband Group of Companies' senior palm oil trader Jim Teh anticipated a slight correction in CPO futures, with prices likely to range between RM4,100 and RM4,300 per tonne.  

“As usual, we will monitor the December stock position, which will be released by the Malaysian Palm Oil Board (MPOB).  

“In terms of physical demand, key buyers will include China, ahead of the Chinese New Year, followed by India, Pakistan, the United States, and countries in Europe and the Middle East,” he said.  

On a Friday-to-Friday basis, the spot-month January 2025 contract fell RM13 to RM4,710 per tonne.

However, the February 2025 contract rose RM50 to RM4,561 per tonne, the March 2025 contract gained RM23 to RM4,391 per tonne, the April 2025 contract increased RM38 to RM4,285 per tonne, the May 2025 contract added RM48 to RM4,209 per tonne, and the June 2025 contract climbed RM55 to RM4,167 per tonne.  

Weekly volume surged to 444,410 lots from 280,197 lots in the previous week, while open interest fell to 229,080 contracts on Friday from 233,618 contracts a week earlier.  

The physical CPO price for January South declined RM40 to RM4,760 per tonne.  

-- BERNAMA