KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to trade with an upward bias next week given the expectations of low output as well as rebound in export demand, said palm oil trader David Ng.
"Currently we are in seasonally lower production and the recent floods in certain key growing areas also affected output. China may resume buying of CPO ahead of the Lunar New Year next month.
"Hence, we expect prices to move between RM3,600 and RM3,820 per tonne next week," he told Bernama.
Ng said the Malaysian Palm Oil Board report, which gives the actual December 2023 supply and demand preview, will be released on Jan 10, as well as export estimates are among the key report data expected for next week.
This week CPO futures traded mixed, influenced by the movements in soybean oil prices on the Chicago Board of Trade, export performance and stockpile level in the country.
On a weekly basis, January 2024 gained RM28 to RM3,690 per tonne, but February 2024 fell RM20 to RM3,675 a tonne, March 2024 decreased RM39 to RM3,682 a tonne, April 2024 slid RM47 to RM3,671 a tonne, May 2024 retreated RM59 to RM3,649 a tonne, and June 2024 dropped RM62 to RM3,615 a tonne.
Total weekly volume improved to 233,557 lots from 159,990 lots in the preceding week, while open interest narrowed to 212,004 contracts from 214,074 previously.
The physical CPO price for January South remained unchanged at RM3,700 per tonne on Friday from RM3,700 a week earlier.