By Engku Shariful Azni Engku Ab Latif
KUALA LUMPUR, Jan 28 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives extended its uptrend to the third consecutive day on Tuesday, supported by the weaker palm oil production by Southern Peninsular mills during Jan 1-25, 2025 period, an analyst said.
Citing Southern Peninsular Palm Oil Millers' Association’s (SPPOMA) data, Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said palm oil production was down by 3.13 per cent during the period.
He said Malaysia's palm oil export performance has remained consistently weak, noting that for the Jan 1-25 period, Intertek Testing Services (ITS) estimated Malaysian palm oil exports at 934,598 tonnes, a decline of 18.89 per cent compared to its estimate for the Dec 1-25, 2024 period.
“Similarly, AmSpec reported exports at 868,960 tonnes, down by 24 per cent over the same comparison period.
“CPO futures trading volume is slower today amidst holidays in China and a lacklustre demand at the moment,” he told Bernama.
Hong Leong Investment Bank (HLIB) recently projected CPO prices to remain elevated at between RM4,500 and RM5,000 per tonne for the first three months of 2025.
It said the uptrend will be driven by seasonally weak production, increased biodiesel mandates in Indonesia, and higher restocking activities ahead of Ramadan.
At the close, the February 2025 contract increased by RM26 to RM4,535 per tonne, March 2025 gained RM42 to RM4,392, and April 2025 rose by RM61 to RM4,279.
May 2025 climbed RM73 to RM4,190 per tonne, June 2025 surged RM81 to RM4,135 and July 2025 increased RM84 to RM4,099.
Trading volume expanded to 59,656 lots from 51,195 lots yesterday, while open interest slid to 219,153 contracts from 219,343 previously.
The physical CPO price for February South increased by RM50 to RM4,650 per tonne.
-- BERNAMA
