CPO EXPECTED TO TRADE LOWER NEXT WEEK AMID ESCALATING TRADE WAR

By Rosemarie Khoo Mohd Sani

KUALA LUMPUR, March 15 (Bernama) – The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to trade lower next week, ranging between RM4,000 and RM4,200 per tonne, said Interband Group of Companies senior palm oil trader Jim Teh.

He said this is due to the escalating global trade war started by the United States (US).

“Market players are staying cautious and will remain on the sidelines as more trade war using tariffs are expected in the coming weeks,” he told Bernama.

In terms of physical demand, Teh said China, India, Pakistan, and some countries from the Middle East and European Union remain as buyers.

On stocks, he said there are no shortages from Indonesia and Malaysia. 

Meanwhile, palm oil trade David Ng said the market could trade on a stable mode backed by strong fundamentals.

“This includes the weaker production pace seen so far, which will keep overall stocks level in the country low.

“We expect prices to be between RM4,400 and RM4,650 per tonne next week,” he said. 

On a Friday-to-Friday basis, the spot-month March 2025 contract fell RM120 to RM4,750 per tonne, April 2025 trimmed RM30 to RM4,694 per tonne, and May 2025 decreased RM49 to RM4,576 per tonne.

Meanwhile, the June 2025 contract slipped RM32 to RM4,474 per tonne, July 2025 eased RM14 to RM4,375 per tonne, and August 2025 shed RM5 to RM4,304 per tonne.

Weekly trading volume expanded to 480,548 lots from 471,778 lots in the previous week, while open interest edged up to 248,014 contracts from 242,153. 

The physical CPO price for March South dropped RM50 to RM4,850 per tonne.

-- BERNAMA