PALMOILMAGAZINE, KUALA LUMPUR – The outlook for crude palm oil (CPO) futures contracts remains divided for the coming week, as ongoing trade tensions and production forecasts continue to shape market sentiment.
Jim Teh, a senior palm oil trader at Interband Group of Companies, expects CPO futures on the Bursa Malaysia Derivatives Exchange to trade lower in the coming week, ranging between RM 4,100 and RM 4,300 per ton. According to him, the commodity’s performance is influenced by uncertainties caused by the ongoing global trade war, particularly triggered by the United States (US), which has made market participants more cautious.
“In terms of physical demand, key buyers remain China, India, Pakistan, several Middle Eastern countries, the European Union, and the US. Meanwhile, stock levels in Malaysia and Indonesia are stable, with no significant shortages,” Teh told Palmoilmagazine.com, quoting Bernama on Tuesday (March 25, 2025).
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On the other hand, palm oil trader David Ng expects a bullish trend for CPO futures, driven by lower production expectations due to last year’s flooding. “We anticipate prices to trade within the RM 4,300 to RM 4,600 per ton range,” he said.
CPO Futures Weekly Performance
From Friday to Friday, April 2025 CPO futures dropped by RM 43 to RM 4,651 per ton. The May 2025 contract declined by RM 69 to RM 4,507, while the June 2025 contract fell by RM 99 to RM 4,375.
July 2025 futures experienced a sharper drop, losing RM 115 to settle at RM 4,260 per ton, while August and September 2025 contracts weakened by RM 127 to RM 4,177 and RM 4,125 per ton, respectively.
Weekly trading volume contracted to 364,344 lots compared to 480,548 lots the previous week, while open interest increased to 256,932 contracts from 248,014 contracts.
Meanwhile, the physical CPO price for March South dropped by RM 70 to RM 4,780 per ton. (P2)
