Lang
Next week, crude palm oil (CPO) futures trading on the Bursa Malaysia Derivatives exchange are projected to lean towards a bearish trend. This anticipated decline is largely driven by a drop in crude oil prices combined with abundant palm oil inventories.
Jim Teh, a senior palm oil trader at the Interband Group of Companies, explained that the recent decrease in crude oil values will negatively impact CPO futures, as they typically mirror trends within the broader energy sector. Teh noted that crude oil prices have fallen to approximately US$73 to US$74 per barrel, which will subsequently pull CPO futures down in the upcoming week. He further highlighted that Malaysia currently holds substantial stock levels of about 2.43 million tonnes. Consequently, he forecasts CPO trading to fluctuate between RM4,250 and RM4,350 per tonne. Furthermore, Teh projected that the physical market demand for CPO will primarily emerge from countries and regions such as India, Pakistan, China, West Asia, the European Union, and the United States.
Supporting this perspective, David Ng, a proprietary trader at Iceberg X Sdn Bhd, stated that CPO futures will likely face downward pressure next week. He attributed this to the weakening of crude oil prices, which has been influenced by a recent peace agreement in West Asia. Ng estimates that CPO prices will hover in the range of RM4,450 to RM4,650 per tonne.
Source: Bernama
