PALMOILMAGAZINE, KUALA LUMPUR – Crude palm oil (CPO) futures on the Bursa Malaysia Derivatives are expected to trend with a bullish bias next week, supported by strengthening soybean oil markets and positive fundamentals in the palm oil sector.
David Ng, a palm oil dealer, shared his outlook: “We anticipate prices will range between RM4,300 and RM4,500 per ton next week,” he stated, as quoted by Palmoilmagazine.com from Bernama on Monday, January 13, 2025.
However, Jim Teh, a senior trader at Interband Group of Companies, offered a contrasting perspective, forecasting a slight correction in CPO prices. “We project prices to move between RM4,100 and RM4,300 per ton,” he said.
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He added that the market will closely watch December’s stock position report, set to be released by the Malaysian Palm Oil Board (MPOB). “In terms of physical demand, key buyers include China ahead of the Lunar New Year, followed by India, Pakistan, the United States, and countries in Europe and the Middle East,” he explained.
Weekly Performance Highlights:
- Spot January 2025 contracts fell by RM13 to RM4,710 per ton.
- Other contracts showed gains, reflecting mixed market sentiment.
- Weekly trading volume surged to 444,410 lots from 280,197 in the previous week.
- Open interest decreased to 229,080 contracts on Friday from 233,618 contracts the prior week.
- Physical CPO prices in the southern region dropped RM40 to RM4,760 per ton for January.
Global demand for CPO remains robust, particularly from major consumers like China and India. Seasonal factors, including preparations for major festivities, are expected to sustain the bullish trend next week, bolstered further by rising soybean oil prices.
Nonetheless, potential corrections cannot be ruled out, with market participants keeping a close watch on stock data releases and developments in other vegetable oil markets for price movement indicators. (P2)
