CPO Futures Expected To Trade Lower On Technical Correction Next Week
KUALA LUMPUR, Aug 16 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to trade lower on a technical correction between the range of RM3,800 per tonne and RM3,950 per tonne, said Interband Group of Companies senior palm oil trader Jim Teh.
He said this is due to the fact that palm oil stocks for July 2025 rose to a 19-month high of 2.1 million tonnes, and futures prices increase due to speculative play by investors.
'As for physical demand, it will continue to come from China, Pakistan, Middle East and European Union countries.
'India is on cautious buying but likely not much from us as they are diversifying their purchases into other oils at the moment,' he added.
Another palm oil trader David Ng said the CPO market for next week is expected to trade with bearish bias given the recent price increase which may deter further buying of palm oil.
'We anticipate prices to trade between RM4,300 and RM4,450 per tonne,' said Ng.
Meanwhile, Palm Oil Analytics co-founder and senior analyst Sathia Varqa said market sentiment could be positive for the CPO market as buying momentum accelerated in the second session on Friday, fuelled by bullish export data for August.
He said cargo surveyor Intertek Testing Services (ITS) reported that exports for the first half of the month were up 16 per cent, while Amspec reported an increase of 21 per cent compared with the same period in July.
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