CPO Futures Expected To Trade Higher Next Week On Soybean, Crude Oil Strength
By Abdul Hamid A Rahman and K. Naveen Prabu
KUALA LUMPUR, June 21 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to trend higher next week, buoyed by the recent strength in soybean and crude oil prices.
Palm oil trader David Ng said that the bullish sentiment in the global edible oil market, particularly the price movement of soybean oil on the Chicago Board of Trade (CBOT), is anticipated to provide firm support to local CPO prices in the coming week.
“At the same time, the stronger crude oil prices may further lift palm oil demand, especially in the biodiesel segment, given the close link between energy prices and biofuel usage.
“The ongoing geopolitical tensions in the Middle East, particularly between Iran and Israel, are also contributing to firmer crude oil prices, which could lend additional support to CPO through the biofuel channel,” he told Bernama.
He said the benchmark CPO contract is expected to trade in the range of RM4,050 to RM4,250 per tonne next week.
Meanwhile, Fastmarkets Palm Oil Analytics senior analyst Dr Sathia Varqa said the market's direction remains uncertain at this point, as it will likely depend on the upcoming export data.
“Market participants will be keenly watching for Malaysia’s production numbers for the first 20 days of June from the Malaysian Palm Oil Association to assess the health of production in June, following three previous months of strong output,” he said.
On a Friday-to-Friday basis, July 2025 increased RM146 to RM4,071 per tonne, while August 2025 gained RM180 to RM4,107 per tonne, September 2025 rose RM196 to RM4,118 per tonne, October 2025 added RM201 to RM4,115 per tonne, November 2025 went up RM208 to RM4,118 per tonne, and December 2025 rose RM209 to RM4,126 per tonne.
The weekly trading volume advanced to 401,206 lots from 339,415 lots in the previous week, while open interest shrank to 231,757 contracts from 244,432 contracts.
The physical CPO price for July South increased RM160 to RM4,120 per tonne.
-- BERNAMA