CPO FUTURES SEEN VOLATILE NEXT WEEK ON MIXED SIGNALS - TRADERS

By Fatin Umairah Abdul Hamid

KUALA LUMPUR, April 12 (Bernama) -- The crude palm oil (CPO) futures market is expected to remain volatile next week, traders said.

Prices are likely to trade cautiously in a narrow range between RM3,800 and RM4,000 per tonne, amid mixed market signals and persistent global uncertainties, said Interband Group of Companies senior palm oil trader Jim Teh.

“The tariffs (news) have so far had no significant impact on CPO. CPO price performance has been relatively strong compared with the equity market,” he told Bernama.

Regarding CPO stock levels, he said the market has taken into account the MPOB’s March report, which showed stocks rose to around 1.562 million metric tonnes.

He also noted a sizeable stockpile in Indonesia. On the physical demand front, he said demand remains steady from China, India, Pakistan, Middle Eastern nations and European Union countries.

Meanwhile, palm oil trader David Ng said prices may trade with a bearish bias next week, within a range of RM4,050 to RM4,250 per tonne, amid lingering uncertainty over US-China trade tensions.

On a Friday-to-Friday basis, the spot month April 2025 contract fell RM241 to RM4,461 per tonne. May 2025 eased RM13 to RM4,461, while June 2025 edged up RM5 to RM4,333.

The July 2025 contract added RM103 to RM4,333 per tonne, August 2025 rose RM49 to RM4,212, and September 2025 gained RM88 to RM4,212 per tonne.

Weekly trading volume jumped to 627,813 lots from 234,581 lots the previous week, while open interest climbed to 486,398 contracts from 256,769 earlier.

The physical CPO price for April South was RM260 lower at RM4,520 per tonne.

-- BERNAMA