Kuala Lumpur: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is anticipated to trade higher next week, with prices expected to range between RM4,300 and RM4,500 per tonne. This forecast comes from Jim Teh, senior palm oil trader at Interband Group of Companies.

According to BERNAMA News Agency, Teh explained that market sentiment may exhibit a bullish tendency due to strong market fundamentals. He highlighted that traders would be closely monitoring developments on Monday, particularly when the Malaysian Palm Oil Board (MPOB) releases data on palm oil exports and stock levels for February 2025. This data release is expected to have a significant impact on market dynamics.

Teh also pointed out that the ongoing tariff disagreements involving the United States and China, Canada, Mexico, and possibly European Union countries could influence the CPO futures market. These geopolitical tensions may lead traders to adopt a more cautious approach in their trading strategies.

In terms of physical demand, Teh identified China, India, Pakistan, Middle Eastern nations, and several European Union countries as the primary buyers of CPO. This demand is expected to support the market in the coming weeks.

On a week-to-week basis, the spot-month March 2025 contract saw an increase of RM141, reaching RM4,870 per tonne. Similarly, the April 2025 contract gained RM79 to settle at RM4,724 per tonne, while the May 2025 contract rose by RM71 to RM4,625 per tonne. The June 2025 contract climbed RM51 to RM4,506 per tonne, the July 2025 contract ticked up RM25 to RM4,389 per tonne, and the August 2025 contract advanced RM7 to RM4,309 per tonne.

The weekly trading volume experienced a significant increase, swelling to 471,778 lots from the previous week’s 348,129 lots. Additionally, open interest edged up to 242,153 contracts from 241,330. The physical CPO price for March South also saw an increase, adding RM100 to reach RM4,900 per tonne.