Kuala Lumpur: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is anticipated to experience a slight downside bias in trading next week. This expectation comes amid increasing output and stock levels, as shared by a trader. Palm oil trader David Ng highlighted that the current market is entering a seasonally higher production period. This period, which typically starts in April and extends through September or October, often leads to a rise in output and corresponding stock levels.

According to BERNAMA News Agency, David Ng projected that the commodity would likely trade between RM3,720 per tonne and RM3,950 per tonne. In contrast, Jim Teh, a senior palm oil trader from the Interband Group of Companies, predicts the market will undergo profit-taking activities, with prices likely to fluctuate between RM3,700 per tonne and RM3,800 per tonne. He emphasized that the market will focus on the Malaysian Palm Oil Board data, which is slated for release on June 10.

From a demand perspective, Teh pointed out that physical buying is expected from countries such as China, India, Pakistan, the Middle East, and the European Union, with minimal purchases from the United States. Additionally, Teh remarked that favorable weather conditions suggest an increase in CPO output.

On a week-to-week basis, the spot-month June 2025 contract saw a rise of RM23 to RM3,911 per tonne. Meanwhile, July 2025 and August 2025 contracts increased by RM39 each, reaching RM3,930 per tonne and RM3,917 per tonne, respectively. September 2025 rose by RM36 to RM3,906 per tonne, October 2025 increased by RM29 to RM3,899 per tonne, and November 2025 went up by RM25 to RM3,899 per tonne.

The weekly trading volume advanced to 290,679 lots from 281,987 lots in the previous week, while open interest slightly decreased to 241,688 contracts from 241,994 contracts. The physical CPO price for June South gained RM30, reaching RM3,960 per tonne.