Kuala Lumpur: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is projected to trade sideways with a slight downward bias in the upcoming week, influenced by expectations of higher output in the approaching weeks.

According to BERNAMA News Agency, palm oil trader David Ng anticipates the commodity to trade within a range of RM3,780 to RM3,930 per tonne. Meanwhile, Jim Teh, a senior palm oil trader at Interband Group of Companies, predicts the price range to be between RM3,800 and RM3,860 next week. Teh mentions that the current price range is advantageous for physical buyers from regions such as China, India, Pakistan, the Middle East, and European Union countries.

Teh also commented on the weather conditions, stating that they are currently conducive for oil palm cultivation, with the tropical climate promoting healthy crop growth.

On a Friday-to-Friday basis, the new spot-month June 2025 contract saw a drop of RM15 to RM3,824 per tonne. In contrast, the July 2025 contract increased by RM8 to RM3,836 per tonne, and the August 2025 contract rose by RM12 to RM3,827. The September 2025 note experienced a rise of RM13 to RM3,821 per tonne, October 2025 edged up by RM15 to RM3,824, and November 2025 gained RM13 to RM3,831.

The weekly trading volume decreased to 331,960 lots from the previous week's 378,493, while open interest increased to 244,075 contracts from 239,366. The physical CPO price for June South slipped by RM10 to RM3,880 per tonne.