CPO Futures Seen Lower Next Week Amid Profit-Taking

Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are expected to trade lower next week due to profit-taking after a recent rally, despite crude oil prices remaining elevated.

Jim Teh, senior palm oil trader at Interband Group of Companies, said CPO futures had climbed to about RM4,700 per tonne alongside crude oil prices, which reached about US$100 per barrel, prompting speculative buying.

However, he expects syndicate speculators to lock in gains next week, describing the market as a 'yo-yo' market.

Teh also noted that although physical demand from key importing countries will continue to support the market, ample palm oil inventories in Malaysia and Indonesia are likely to cap further gains.