CPO MARKET TO TRADE IN YO-YO MODE NEXT WEEK AMID HOLIDAY, PRODUCTION CONCERNS

By Fatin Umairah Abdul Hamid

KUALA LUMPUR, Dec 21 (Bernama) -- The crude palm oil (CPO) market is expected to experience yo-yo price movements next week due to a shortened trading week, said Interband Group of Companies senior palm oil trader Jim Teh.

Teh explained that the holiday season next week, with many international traders on leave for Christmas celebration, will contribute to lower market liquidity.

“The trading range is expected to be between RM4,300 per tonne and RM4,400 per tonne,” he told Bernama.

He added that with the year-end approaching, traders are focused on clearing their positions, which is likely to result in a quieter market in the coming days. 

Meanwhile, palm oil trader David Ng said the CPO market is expected to trade with a bullish bias, driven by expectations of weaker production.

“We expect prices to trade between RM4,300 per tonne and RM4,750 per tonne next week,” Ng told Bernama. 

On a Friday-to-Friday basis, the spot-month January 2025 contract fell by RM232 to RM4,762 per tonne, February 2025 decreased by RM335 to RM4,571 per tonne, and March 2025 declined by RM383 to RM4,433 per tonne.

April 2025 contract fell RM386 to RM4,303 per tonne, May 2025 dropped RM355 to RM4,207 per tonne, and June 2025 stood at RM4,141 per tonne.

Total weekly volume increased to 582,992 lots from 516,819 lots in the preceding week, while open interest improved to 244,206 contracts from 241,421 contracts a week earlier.

The physical CPO price for December South was down by RM300 to RM4,900 per tonne. 

-- BERNAMA