CPO Futures Likely To Trade With Upward Bias Next Week
05/10/2024 (Bernama), Kuala Lumpur – The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to trade with an upward bias amid rising crude oil and soybean oil prices, a dealer said.
However, Palm oil trader David Ng said market would likely remain volatile as the Chinese market resume trading after a one-week break.
“We expect prices to trade between the RM4,150 and RM4,380 range next week,” he told Bernama.
Meanwhile, Interband Group of Companies senior palm oil trader Jim Teh expect CPO price to be lower next week as traders booked profits amid the recent rally in price.
He said the Malaysian Palm Oil Board (MPOB) is expected to release the September 2024 industry performance report next week, with analysts predicting an increase in CPO stocks in that month.
“Even though CPO price would have dropped due to its rising stocks, it is still profitable,” he said.
The added that physical demand for CPO would come from India, China, Pakistan, Middle Eastern countries, the United States and Europe.
On a Friday-to-Friday basis, the spot month of October 2024 surged by RM132 to RM4,159 a tonne, November 2024 rose RM95 to RM4,096, while December 2024 gained RM104 to RM4,051.
January 2025 increased by RM89 to RM4,014, February 2025 rose by RM72 to RM3,979, and March 2025 gained RM60 to RM3,945.
Total weekly volume fell to 437,710 lots from 472,374 last week, while open interest was down to 251,725 contracts from 258,379 previously.
The physical CPO price for October South jumped RM210 to RM4,420 on Friday from RM4,210 last week.