KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to trend lower next week on profit-taking activities.

       Interband Group of Companies senior palm oil trader Jim Teh said the stock is expected to remain high in Malaysia and Indonesia as the demand is low from other countries.

       "The traders are also waiting for stock data due on Aug 11, 2021. I expect the stock will be higher due to good weather and demand as usual will be quiet with no festivals,” he told Bernama.

       As such, the price movement next week is expected to confine between RM3,800 and RM3,900 per tonne, he said.

       Meanwhile, palm oil trader David Ng forecasts CPO futures to trade with an upward bias ahead of key crop reports to be released next week.

       "Next week trading will be based on the Malaysian Palm Oil Board’s July production data and Aug 1-10 export outlook,” he said.

       Compared to Teh, palm oil trader David Ng was slightly more bullish in his CPO price outlook, projecting the commodity to trade between RM4,080 and RM4,350 per tonne in the short term.

       Earlier this week, CGS-CIMB Securities Sdn Bhd has projected the CPO prices to remain firm at between RM3,500 and 4,000 per tonne for August.

       For the week just ended, Malaysian CPO futures ended mostly higher on the prospect of weaker production and stronger exports in the coming weeks.

       At the close, August 2021 narrowed RM136 to RM4,520 per tonne, September 2021 trimmed RM127 to RM4,420 per tonne, October 2021 decreased RM95 to RM4,274 per tonne, November 2021 fell RM74 to RM4,156 per tonne, December 2021 lost RM58 to RM4,075 per tonne and January 2022 eased RM49 to RM4,013 per tonne.

       Weekly volume rose to 295,273 from 288,074 lots in the previous trading week, while open interest down to 249,744 contracts versus 251,276 contracts previously.

       The physical CPO price for July South gave up RM100 to RM4,600 a tonne on Friday. - Bernama