Bursa Malaysia Derivatives CPO Futures Seen Traded with Bearish Bias Next Week

Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are expected to trade with a bearish bias next week, according to Iceberg X Sdn Bhd proprietary trader David Ng.

The weakness in energy markets has led to lower crude oil prices, making conventional diesel cheaper and reducing the cost advantage of biodiesel produced using palm oil. As a result, demand for palm oil as a biodiesel feedstock could weaken, putting pressure on CPO prices.

However, Ng said the downside pressure on prices is likely to be limited by recent robust export performance. He expects prices to trade between RM4,580 and RM4,750 per tonne next week.