KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to trade with an upward bias next week given expectations of a weaker output due to seasonal factors, said palm oil trader David Ng.
He said the continued strength in external markets for soybean oil and crude oil is expected to boost market sentiment in the near term.
"We expect CPO futures to trade with an upward bias with prices looking to test the RM3,950 level. Support can be seen around the RM3,700 level,” he told Bernama.
Meanwhile, Interband group of companies’ senior palm oil trader Jim Teh said CPO is likely to trade between RM3,450 and RM3,550 per tonne next week.
He said China may resume the purchase of CPO ahead of the Chinese New Year next month.
This week, CPO futures traded higher amid positive sentiment over lower output expectations in the coming weeks, coupled with stronger crude oil prices.
On a weekly basis, the spot month January 2024 contract gained RM90 to RM3,780 a tonne, February 2024 added RM156 to RM3,831 a tonne, March 2024 rose RM174 to RM3,856 a tonne, April 2024 increased RM172 to RM3,843 a tonne, May 2024 edged up RM150 to RM3,799 a tonne, and June 2024 climbed RM123 to RM3,738 a tonne.
Total weekly volume improved to 385,530 lots from 233,557 lots in the preceding week, while open interest fell to 202,342 contracts from 212,004 previously.
The physical CPO price for January South rose RM150 to RM3,850 per tonne on Friday from RM3,700 a week earlier. - Bernama
