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New Straits Times
15 hours ago
- Business
- New Straits Times
CPO Futures likely to trade with slight downside bias next week
KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to trade with a slight downside bias next week, amid rising output and stock levels, said a trader. Palm oil trader David Ng noted that the market is currently entering a seasonally higher production period, which typically begins in April and extends through September or October -- a period during which output typically increases, leading to a corresponding rise in stock levels. "We expect the commodity to trade between RM3,720 per tonne and RM3,950 per tonne," he told Bernama. Meanwhile, Interband Group of Companies senior palm oil trader Jim Teh expects the market to experience profit-taking, with prices likely to trade between RM3,700 per tonne and RM3,800 per tonne. "Stock-wise, the market will be closely watching the Malaysian Palm Oil Board data, which is scheduled for release on June 10," he said. In terms of demand, Teh noted that physical buying is expected from China, India, Pakistan, the Middle East, the European Union countries, and little buying from the United States. "Production-wise, the good weather conditions suggest that CPO output is likely to increase," he added. On a Friday-to-Friday basis, the spot-month June 2025 contract rose RM23 to RM3,911 per tonne, while July 2025 and August 2025 added RM39 each to RM3,930 per tonne and RM3,917 per tonne, respectively. September 2025 rose RM36 to RM3,906 per tonne, October 2025 increased RM29 to RM3,899 per tonne, and November 2025 went up RM25 to RM3,899 per tonne. The weekly trading volume advanced to 290,679 lots from 281,987 lots the previous week, while open interest edged down to 241,688 contracts from 241,994 contracts. The physical CPO price for June South gained RM30 to RM3,960 per tonne. -- BERNAMA
Barnama
26-05-2025
- Business
- Barnama
CPO Futures Seen Trading Sideways Next Week On Higher Output
By Nur Athirah Mohd Shaharuddin KUALA LUMPUR, May 24 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to trade sideways with a slight downward bias next week due to expected higher output in the coming weeks. 'We expect the commodity to trade at between RM3,780 and RM3,930 (per tonne),' palm oil trader David Ng told Bernama. Interband Group of Companies senior palm oil trader Jim Teh sees the commodity's price ranging between RM3,800 and RM3,860 next week. He noted that the current price range represents a good bargain for physical buyers from China, India, Pakistan, the Middle East and European Union countries. Commenting on the weather, Teh said current conditions are ideal for oil palm cultivation, with the favourable tropical climate supporting healthy crop growth. On a Friday-to-Friday basis, the new spot-month June 2025 contract fell RM15 to RM3,824 per tonne, July 2025 was RM8 higher at RM3,836 per tonne, and August 2025 added RM12 to RM3,827. The September 2025 note rose RM13 to RM3,821 per tonne, October 2025 edged up RM15 to RM3,824, and November 2025 gained RM13 to RM3,831. The weekly trading volume slid to 331,960 lots from 378,493 the previous week, while open interest added to 244,075 contracts from 239,366.
The Star
22-04-2025
- Business
- The Star
CPO futures to see bearish bias this week on rising production output
KUALA LUMPUR: The crude palm oil (CPO) futures market is expected to trade with a bearish bias this week given the rising output and weak general market sentiment, says palm oil trader David Ng. Ng anticipated the crop's prices to trade between RM3,900 and RM4,100 a tonne this week. Meanwhile, Interband Group of Companies senior palm oil trader Jim Teh said CPO futures are likely to be in a technical correction within the range of RM3,800 to RM4,000 per tonne. 'There is plenty of stock in Malaysia and Indonesia. Due to good weather, production for April is seen to be good in Malaysia and Indonesia. Physical buying will come from China, especially with the recent visit of Chinese President Xi Jinping, besides India, Pakistan, Middle East and European Union countries,' Teh told Bernama. Mumbai-based Sunvin Group commodity research head Anilkumar Bagani expected CPO futures to trade in a range of RM3,850 and RM4,200 a tonne with the focus on Malaysian production and clarity on US volume obligations for 2025 and 2026. 'This week the focus will be on April 1 to 20 palm oil production data from the Southern Peninsular Palm Oil Millers' Association and the Malaysian Palm Oil Association,' he added. He said the SPPOMA's April 1-15 production estimates came at +3.97 per cent, and the market is expecting palm oil production to show a double-digit growth in April on a month-on-month basis. Anilkumar said there are also expectations that the US Environmental Protection Agency will raise the RVO mandate for 2025 to 5.25 billion gallons from 3.35 billion gallons in 2024, which will lead soybean oil prices to muster gains and more bullishness is likely to follow due to the lower soybean oil stocks in the US. 'The Brazilian biodiesel mandate, currently at 14 per cent is also likely to go up to 15 per cent,' he added. On a Friday-to-Friday basis, the spot month May 2025 contract fell RM344 to RM4,117 per tonne, June 2025 slipped RM317 to RM4,016, July 2025 contract decreased RM358 to RM3,975 per tonne, August 2025 weakened RM251 to RM3,961, September 2025 lost RM253 to RM3,959 per tonne, and October 2025 depreciated RM111 to RM3,960 per tonne. Weekly trading volume declined to 434,196 lots from 627,813 lots the previous week, while open interest dropped to 239,000 contracts from 486,398 earlier. The physical CPO price for April South was RM270 lower at RM4,250 per tonne. - Bernama
