economy

CPO futures to trade higher next week due to stronger soybean oil futures

KUALA LUMPUR: The crude palm oil (CPO) futures market is expected to trade higher next week due to stronger soybean oil futures supporting higher prices, a trader said.

Palm oil trader David Ng said market sentiment was also influenced by robust demand. Therefore, he expected prices to trade between RM4,900 and RM5,180 per tonne next week.

However, Interband Group of Companies senior palm oil trader Jim Teh anticipated the CPO futures to trade yo-yo next week and foresaw prices to trade between RM4,500 and RM4,700 per tonne.

"November is the CPO boom month as prices are close to RM5,000 per tonne. With these prices so high, China, India, Pakistan, Middle Eastern countries and European Union countries will buy when there is necessity.

"There are plenty of stocks in Malaysia and Indonesia, there is no shortage of crude palm oil stock," he told Bernama.

On a Friday-to-Friday basis, the spot month November 2024 contract increased by RM184 to RM5,160 per tonne, December 2024 gained RM230 to RM5,144 per tonne and January 2025 improved by RM233 to RM4,868 tonne.

Meanwhile, February 2025 gained RM231 to RM5,039 per tonne, March 2025 climbed RM212 to RM4,938 per tonne and the April 2025 contract rose RM184 to RM4,637 per tonne.

Total weekly volume increased to 461,460 lots from 316,573 lots in the preceding week, while open interest fell to 239,911 contracts from 246,507 contracts previously.

The physical CPO price for November South increased by RM180 to RM5,160 on Friday from RM4,980 a week earlier.

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