CPO Futures Likely To Trade With Slight Downside Bias Next Week

By Durratul Ain Ahmad Fuad

KUALA LUMPUR, June 7 (Bernama) -- 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