CPO futures expected to trade lower on technical correction next week
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.
"Next week the market will be focused on Aug 1-20 production data," he said.
On a weekly basis, the August contract rose RM124 to RM4,338 per tonne, September 2025 gained RM191 to RM4,425 per tonne, and October 2025 soared RM227 to RM4,427 per tonne.
The November 2025 contract advanced RM237 to RM4,511 per tonne, December 2025 was up RM244 to RM4,528 per tonne, while January 2026 climbed RM237 to RM4,526 per tonne.
The weekly trading volume increased to 472,033 lots from 354,336 lots last week, while open interest eased to 249,718 contracts from 311,976 contracts.
The physical CPO price for August South advanced RM150 to RM4,400 per tonne.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
4 hours ago
- The Star
Ease carbon tax impact on SMEs
MALAYSIA will introduce a carbon tax next year, targeting high-emission industries such as iron, steel and energy – a move that could ripple through the entire supply chain and affect small and medium enterprises (SMEs). Without a domestic carbon tax, exporters of carbon-intensive goods still risk paying levies under the European Union's carbon border adjustment mechanism (CBAM), which takes effect next year.
The Sun
13 hours ago
- The Sun
EU-US trade statement delayed over digital rules dispute, FT reports
BRUSSELS: The European Union is resisting US attempts to target its digital regulations as both sides finalise a delayed trade statement, according to the Financial Times. Disagreements over 'non-tariff barriers,' including EU digital rules, are stalling the joint declaration, EU officials told the newspaper. Reuters could not independently confirm the report, and the EU, White House, and State Department have yet to comment. The statement was initially expected shortly after the July deal announcement by EU President Ursula von der Leyen and US President Donald Trump. The July agreement imposed a 15% tariff on most EU goods, halving the initially proposed rate and preventing a wider trade war. Washington seeks concessions on the EU's Digital Services Act (DSA), which it claims restricts free speech and burdens US tech firms, the FT reported. The EU insists that relaxing the DSA, designed to combat illegal online content, is non-negotiable. The bloc had expected Trump to reduce EU car export tariffs from 27.5% to 15% by August 15, but this may now wait until the statement is finalised. - Reuters
The Star
17 hours ago
- The Star
Industrial output slowing on rain, capacity curbs
More incentives: People fill the popular shopping area in Nanjing East Road, Shanghai. Indicators reflecting China's third-quarter performance will likely draw keen attention from policymakers as they maintain a wait-and-see approach to additional stimulus. — Bloomberg BEIJING: The expansion in China's industrial output likely slowed sharply last month as downpours disrupted factory and mine operations while the government intensified efforts to rein in excess capacity. Official data due today will show industrial production increased 6% in July from a year earlier, down from a 6.8% gain in the previous month, according to the median forecast by 33 economists in a Bloomberg survey. Retail sales growth is expected to soften to 4.6%, which would be the lowest in five months. Indicators reflecting the economy's third-quarter performance will likely draw keen attention from Chinese policymakers as they maintain a wait-and-see approach to additional stimulus. At a July meeting to set policies for the rest of the year, officials indicated a focus on implementing supportive measures already planned while promising to enhance aid when needed. High temperatures, heavy rain and flooding hit several regions in China last month, forcing factories and construction sites to suspend operations. Authorities are stepping up scrutiny over excessive production in sectors like coal, after signalling at the start of July that they are addressing cut-throat competition among businesses in what's dubbed the anti-involution campaign. The world's second-largest economy grew 5.3% in the first half of the year, well above Beijing's annual target of around 5%. But challenges ahead are rife with the continuing real estate slump and deflationary pressure becoming entrenched. A contraction in property investment may have deepened in the January-July period from the first half, moderating fixed-asset investment growth, the survey showed. The cooling momentum could have pressured the job market, with the urban unemployment rate expected to inch up to 5.1% last month. Ongoing trade negotiations with the United States also create uncertainty and make businesses cautious about expanding. American levies averaging about 55% have significantly reduced China's exports to the world's largest consumer market. Any talks to lower that rate will likely be tough. Treasury secretary Scott Bessent has indicated that Washington wants to see measures from China over an extended period to stem the flow of chemicals used to make fentanyl before lowering duties. He also ruled out including Chinese investments in the United States as part of any trade pact. This makes reducing China's trade surplus with the United States potentially more challenging compared with other regions like Japan and the European Union, which have committed billions of dollars in their deals with America. Domestically, investors will watch closely for concrete measures the government and companies will take to trim excess and outdated capacity. Despite rhetoric to ease the rat race among enterprises, questions remain about the government-led campaign's effectiveness, given many of the sectors plagued by the problem are privately owned and domestic demand has been stubbornly weak. Ending price wars in sectors such as solar power and electric vehicles will be essential to reflating the economy. It will also address concerns of trading partners over Chinese goods flooding their markets and squeezing local industries. — Bloomberg
