Crude Palm Oil Futures Seen Slightly Lower Next Week

Crude palm oil futures on Bursa Malaysia Derivatives are expected to trend slightly lower next week amid rising production and stock levels, according to a trader.

Palm oil trader David Ng noted that the market is currently entering a seasonal period of higher output, which typically runs from April through to September or October — a period during which production usually increases, leading to higher stock levels.

Ng told Bernama: "We expect the commodity to trade between 3,720 ringgit and 3,950 ringgit per tonne."

In the same vein, Interband Group's chief palm oil trader Jim Teh predicted that the market would see profit-taking, with prices likely to trade between 3,700 ringgit and 3,800 ringgit per tonne.

He added: "In terms of stocks, the market will be closely watching data from the Malaysian Palm Oil Board (MPOB), due to be released on 10 June."

On the demand side, Teh pointed to expectations of actual purchases from China, India, Pakistan, the Middle East region and European Union countries, while demand from the United States is expected to remain limited.

He continued: "In terms of production, favourable weather conditions suggest that crude palm oil output is likely to rise."

Friday to Friday:

• The spot June 2025 contract rose by 23 ringgit to reach 3,911 ringgit per tonne.
• The July 2025 and August 2025 contracts each added around 39 ringgit to reach 3,930 ringgit and 3,917 ringgit per tonne respectively.
• The September 2025 contract rose by 36 ringgit to 3,906 ringgit per tonne, the October 2025 contract gained 29 ringgit to 3,899 ringgit, while the November 2025 contract rose by 25 ringgit to 3,899 ringgit per tonne.

Trading volumes:

• Weekly trading volume rose to 290,679 lots compared with 281,987 lots in the previous week.
• Meanwhile, open interest fell to 241,688 contracts from 241,994 contracts.

Physical crude palm oil price:

• The physical crude palm oil price for June delivery in southern Malaysia rose by 30 ringgit to reach 3,960 ringgit per tonne.

Source: Bernama