Kuala Lumpur: 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 attributed this to the escalating global trade war initiated by the United States (US).

According to BERNAMA News Agency, Jim Teh noted that market players are staying cautious and will remain on the sidelines as more trade war using tariffs are anticipated in the coming weeks. In terms of physical demand, Teh identified China, India, Pakistan, and some countries from the Middle East and European Union as continuing buyers. On the supply side, he asserted that there are no shortages from Indonesia and Malaysia.

Meanwhile, palm oil trader David Ng expressed a different outlook, suggesting that the market could trade on a stable mode backed by strong fundamentals. He pointed out the weaker production pace observed so far, which will keep overall stock levels in the country low. Ng expects prices to be between RM4,400 and RM4,650 per tonne next week.

On a Friday-to-Friday basis, the spot-month March 2025 contract fell RM120 to RM4,750 per tonne. The April 2025 contract trimmed RM30 to RM4,694 per tonne, and the May 2025 contract decreased RM49 to RM4,576 per tonne. Additionally, 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 increased to 480,548 lots from 471,778 lots in the previous week, while open interest rose to 248,014 contracts from 242,153. The physical CPO price for March South dropped RM50 to RM4,850 per tonne.