KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is predicted to experience an upward trend next week due to escalating flood conditions on the East Coast. Palm oil dealer David Ng highlighted that the low inventory levels of the commodity are also expected to drive up its price.

According to BERNAMA News Agency, Ng projected that CPO futures would trade within the range of RM4,900 to RM5,250 in the coming week. However, there are contrasting views in the market, as Interband Group of Companies senior palm oil trader Jim Teh anticipates the futures might trade lower due to profit-taking activities following recent rallies. Teh forecasted that prices would range between RM4,500 and RM4,600 per tonne next week.

On a Friday-to-Friday basis, the spot-month December 2024 contract surged RM448 to RM5,238 per tonne. The January 2025 contract increased by RM411 to RM5,125, while February 2025 expanded by RM378 to RM5,020. Additionally, the March 2025 contract gained RM356 to RM4
,903 per tonne, April 2025 rose RM314 to RM4,772, and May 2025 climbed RM267 to RM4,640.

In terms of trading volume, the total weekly volume decreased to 402,631 lots from 532,086 lots in the previous week. Open interest also saw a decline, falling to 227,559 contracts from 239,910 contracts a week earlier.