Lang
Crude palm oil futures on Bursa Malaysia Derivatives are expected to trade with a slight upward bias next week, supported by strong seasonal fundamentals, according to one market participant.
Palm oil trader David Ng said the main reason was the weaker seasonal production pattern typically seen in the first quarter of the year. "Expectations of lower crude palm oil output will also weigh on market sentiment. We expect prices to trade between 4,200 ringgit and 4,450 ringgit per tonne next week," he added.
Meanwhile, Jim Teh, senior palm oil trader at Interband Group of Companies, expects crude palm oil futures to fall next week on profit-taking. He also noted that the market would remain cautious as traders await the Malaysian Palm Oil Board's crude palm oil stock and export data for December 2024, due on 10 January 2025.
"Crude palm oil futures are likely to trade in a range of 4,300 ringgit to 4,400 ringgit per tonne next week. As for physical demand, it will come from China ahead of the Chinese New Year celebrations, followed by India, Pakistan, the United States and countries in Europe and the Middle East," he said.
On a week-on-week basis (Friday to Friday), the benchmark January 2025 contract fell 252 ringgit to 4,723 ringgit per tonne, the February 2025 contract dropped 270 ringgit to 4,511 ringgit, and the March 2025 contract declined 256 ringgit to 4,368 ringgit.
The April 2025 contract also fell 212 ringgit to 4,247 ringgit per tonne, the May 2025 contract lost 170 ringgit to 4,161 ringgit, and the June 2025 contract slipped 141 ringgit to 4,112 ringgit.
Total weekly trading volume rose to 280,197 lots from 194,976 lots the previous week, while open interest fell to 233,618 contracts on Friday from 242,999 contracts a week earlier.
The physical price for January (south) crude palm oil fell 250 ringgit to 4,800 ringgit per tonne.
Source: Bernama