Lang
The crude palm oil contract on Bursa Malaysia Derivatives is expected to trend higher this week, supported by recent strength in soybean oil and crude oil prices.
Palm oil trader David Ng said positive sentiment in the global vegetable oils market, particularly the price movement of soybean oil on the Chicago Mercantile Exchange (CBOT), is expected to provide strong support for local crude palm oil prices in the coming week.
"At the same time, strong crude oil prices could support demand for palm oil, especially in the biodiesel sector, given the close relationship between energy prices and biofuel usage," he said.
"Ongoing geopolitical tensions in the Middle East, particularly between Iran and Israel, are also helping to boost crude oil prices, which could provide additional support for crude palm oil via the biodiesel channel," he told Bernama.
He noted that the benchmark crude palm oil contract is expected to trade in a range of between 4,050 ringgit and 4,250 ringgit per tonne this week.
Meanwhile, Dr Sathia Varqa, senior analyst at Palm Oil Analytics, said the market direction remains uncertain at this stage, as it will depend on upcoming export data.
"Market participants will be awaiting Malaysia's production figures for the first 20 days of June, due to be released by the Malaysian Palm Oil Association, to assess production performance in June following three previous months of strong output," he added.
On a week-on-week basis, the July 2025 contract rose 146 ringgit to 4,071 ringgit per tonne, while the August 2025 contract gained 180 ringgit to 4,107 ringgit per tonne, the September 2025 contract climbed 196 ringgit to 4,118 ringgit per tonne, the October 2025 contract added 201 ringgit to 4,115 ringgit per tonne, the November 2025 contract rose 208 ringgit to 4,118 ringgit per tonne, and the December 2025 contract advanced 209 ringgit to 4,126 ringgit per tonne.
Weekly trading volume rose to 401,206 lots compared with 339,415 lots in the previous week, while open interest fell to 231,757 contracts from 244,432 contracts.
The cash price for July crude palm oil, delivered south, rose 160 ringgit to 4,120 ringgit per tonne.
Source: Bernama