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Crude palm oil (CPO) futures traded on Bursa Malaysia Derivatives are projected to experience a downward trend in the coming week. Market analysts anticipate that traders will engage in profit-taking activities following the recent price surge, even as global crude oil prices remain at elevated levels.
Jim Teh, a senior palm oil trader at Interband Group of Companies, noted that CPO futures had recently advanced toward the RM4,700 per tonne mark. This upward movement was largely fueled by rising crude oil prices—which hovered around US$100 per barrel—triggering an influx of speculative buying across the market.
However, Teh expects speculative market participants to capitalize on these recent gains and lock in profits in the upcoming sessions, characterizing the current trading environment as a "yo-yo" market marked by volatility.
He estimated that CPO futures would likely fluctuate within a trading band of RM4,400 to RM4,500 per tonne next week.
Furthermore, Teh highlighted that while persistent physical demand from major purchasing regions—such as China, India, Pakistan, the Middle East, the European Union, and the United States—continues to provide fundamental support, substantial palm oil inventory levels in both Malaysia and Indonesia will likely prevent any significant further price increases.
Source: Bernama