Conflicting views on where CPO futures are headed next week
23/03/2025 (Bernama), Kuala Lumpur - Opinions are divided on the outlook for the crude palm oil (CPO) futures contract next week, with the ongoing trade war and weaker output forecast being cited to support the differing views.
Interband Group of Companies senior palm oil trader Jim Teh said the CPO futures on Bursa Malaysia Derivatives are expected to trade lower in the coming week, ranging between RM4,100 and RM4,300 per tonne.
According to him, the commodity's performance would be affected by the global trade war started by the United States (US), causing the market to be in cautious mode.
"In terms of physical demand, China, India, Pakistan, some Middle East countries, the European Union and the US remain as buyers.
"Stock-wise, it is good, with no shortage in Malaysia and Indonesia," Teh told Bernama.
In contrast, palm oil trader David Ng said CPO futures are expected to trade with a bullish bias amid expectations of weaker production due to the flood impact from last year.
"We expect prices to range between RM4,300 and RM4,600," he said.
On a Friday-to-Friday basis, the new spot-month April 2025 contract declined RM43 to RM4,651, May 2025 fell RM69 to RM4,507 and June 2025 dropped RM99 to RM4,375.
July 2025 tumbled RM115 to RM4,260 per tonne, August 2025 lost RM127 to RM4,177 and September 2025 stood at RM4,125.
Weekly trading volume shrank to 364,344 lots from 480,548 lots last week, while open interest edged up to 256,932 contracts from 248,014 previously.
The physical CPO price for March South dropped RM70 to RM4,780 per tonne.