CPO Futures Likely To Trade Sideways Next Week
28/09/2024 (Bernama), Kuala Lumpur - The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to trade sideways next week, as traders are searching for market factors due to the coming Golden Week holidays in China, a dealer said.
Palm oil trader David Ng said the market would likely look for clues that can move prices next week, such as soybean oil performance and palm oil export data.
"We expect CPO prices to trade between the RM3,950 and RM4,100 range next week," he told Bernama.
Meanwhile, Interband Group of Companies senior palm oil trader Jim Teh expects the CPO price to trade lower next week, as traders booked profits amid the recent rally in price.
He said the CPO price would likely trade between the RM3,700 and RM3,900 range next week.
"Physical demand for CPO would come from China, Pakistan, Middle Eastern countries, the United States and European countries, though demands from India have slowed down due to high CPO prices," Teh said.
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 grew by RM72 to RM3,979, and March 2025 recovered by RM60 to RM3,945.
Total weekly volume advanced to 472,374 lots from 368,026 last week, while open interest climbed to 258,379 contracts from 254,752 previously.
The physical CPO price for October South went up RM140 to RM4,210 on Friday from RM4,070 last week.
-- BERNAMA