KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is likely to see profit-taking next week, with prices expected to move between RM3,400 and RM3,500 per tonne.
Interband group of companies senior palm oil trader Jim Teh said the market is also expected to be quieter in the coming week as many local and international traders will be on long holiday for Christmas and year-end break.
"I do not foresee much volume being traded next week, while stocks in Malaysia are expected to remain high at about 2.4 million tonnes,” he told Bernama.
For the week just ended, CPO futures traded mostly higher on the expectation of weaker output in the coming weeks.
At the close, January 2024 gained RM23 to RM3,677 per tonne, February 2024 increased RM27 to RM3,719 per tonne, and March 2024 rose RM27 to RM3,738 per tonne.
Meanwhile, April 2024 added RM23 to RM3,735, May 2024 lifted RM14 to RM3,713 per tonne and June 2024 edged up RM4 to RM3,681 per tonne.
Total weekly volume decreased to 239,804 lots from 262,151 lots in the preceding week, while open interest firmed to 217,514 contracts from 215,935 contracts previously.
The physical CPO price for December South gained RM70 to RM3,720 per tonne on Friday from RM3,650 per tonne a week earlier.
The market will be closed on Dec 25 for the Christmas holiday and resume operations the following day. - Bernama
